Blanchard Kahn conditions are not satisfied: indeterminacy d

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.

Regards,
Vannak

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.

Regards,
Vannak

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)

See

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!
mymodel.zip (3.6 KB)

Your timing must be wrong. model_diagnostics returns:

MODEL_DIAGNOSTICS: The following endogenous variables aren't present at the current period in the model:
imrse
bf

Thanks!

I corrected the timing. I am still getting the same error though. Do you have an idea what could potentially cause it?
mymodel.zip (5.0 KB)

Most often it’s a matter of a timing or sign error. I can only recommend rechecking every equation.

Hi there

I posted a post on my error message yesterday, but noticed, I should have probably posted it under an existing similar post. Sorry I’m a new user and did not know.
I get the followig error when running my code:

"There are 8 eigenvalue(s) larger than 1 in modulus
for 4 forward-looking variable(s)

The rank condition ISN’T verified!

Error using print_info (line 32)
Blanchard & Kahn conditions are not satisfied: no stable equilibrium. "

I read all the previous posts in the forum on that error message and many got their problem solved by correcting for the timing convention. However I have k and b already in my predetermined block and hence this should not be causing the error. Could anybody please help me and give me a suggestion?

Here is my code
v1.mod (7.8 KB)

Many thanks, I appreciate it greatly

I replied at Error: Blanchard & Kahn conditions are not satisfied: no stable equilibrium - #2 by jpfeifer