Blanchard Kahn conditions are not satisfied: indeterminacy d

Please provide the full file generating that error.

test1.mod (1.7 KB) Here is the file.

Dear Jpfeifer,

I hope you can help me on the above comment. Regards

All your steady state values need to be 0, including the one for r. Now your model has a unit root, explaining why the steady state cannot be found endogenously. This is most probably because the two consumption aggregates are perfect substitutes.

Dear professor jpfeifer,
I have the same problem in my model: “Blanchard & Kahn conditions are not satisfied: indeterminacy”, could please help me to figure out where is the mistake?moroco.mod (10.9 KB)

nkmodel.mod (1.5 KB)
Dear Jpfeifer,

After weeks of trying, I still can’t find the reason why the model doesn’t run.

It is really strange that the model runs if I change some values of my parameters. For example, if I set ETAS=1.13, ETAU=1.22 and RHO= any value less than 0.3, the model runs. I really don’t know why this is the case. I am very appreciative if you can help me on this.


Your steady state state looks strange. Why are you combining linear and nonlinear equations?

Dear Jpfeifer,

Thanks for your response. I combine linear and nonlinear because to linearise some of the equations I will need find the steady state analytically. Is it incorrect to combine linear and nonlinear?

Sorry, I am a novice in this so I might ask dumb question.


I have tried to put everything in nonlinear form. But, still the same problem arises. I am very appreciative if you can give me advice on this. Thanks

You need to consistently enter your model. You can combine linear and nonlinear equations, but only in a consistent manner. In your old version, you have negative steady state values for things that should not be negative.

Thanks for your response. Somehow, when I change some of the parameter values I will get the positive steady state. For example, if I set ETAS=1.13, ETAU=1.22 and RHO= any value less than 0.3, the model runs and positive steady state value is obtained. Would be really happy if you can advise me on this.

Please sit down and take your time to correct the model. You are the model builder and need to know which steady state values for the model make sense. My impression is that your mix of equations is inconsistent and causes the problem. I don’t think it is just a matter of parameters.

Hi, I also have an issue regarding Blanchard & Kahn conditions are not satisfied: no stable equilibrium

I use a model with loglinear and linearized variables. The linearized ones are debt (d), trade balance of tradable goods (NXtr) and the domestic interest rate, as the first 2 can have negative values in steady state and the last one depends on debt.

Could you help me professor?Thank you very much!

CodigoProyectoSeminarioInv.mod (4.1 KB)


Hi professor, thank you very much for your help, it really made my model work and I could understand my mistakes.

Dear professor jpfeifer:

When I run the yiqing.mod file in dynare, there is a trouble I don’t know how to solve it. The error information coming up with the following message:

There are 11 eigenvalue(s) larger than 1 in modulus

for 13 forward-looking variable(s)

The rank condition ISN’T verified!

Error using print_info (line 45)

Blanchard Kahn conditions are not satisfied: indeterminacy

Error in stoch_simul (line 100)

print_info(info, options_.noprint, options_);

Error in yiqing (line 487)

info = stoch_simul(var_list_);

Error in dynare (line 235)

evalin(‘base’,fname) ;

Thank you very much for your help!

yiqing.mod (3.3 KB)

Your timing is wrong. I guess that k and h are actually predetermined. So you are missing

predetermined_variables k h;

Please do no cross-post. See BK conditions are not satisfied: indeterminacy

Dear Dr. Pfeifer,

I checked my model so many times but I still don’t get why I am getting the same error on BK conditions. Would it be possible for you to have a quick look by any chance?

Thanks in advance! (3.6 KB)