Dear all,

I write a simplified version NK-Model based upon J.P.T.(2010)“Investment Shock and Business cycle” without stiky wage nor capital utilization. But the rank condition isn’t verified although the eigenvalue(s) larger than 1 in modulus is the same as forward-looking variable(s). Here are the results:

There are 6 eigenvalue(s) larger than 1 in modulus

for 6 forward-looking variable(s)

The rank condition ISN’T verified!

Loading 95 observations from five_variable_1992Q2_2015Q4.m

Error in computing likelihood for initial parameter values

ESTIMATION_CHECKS: There was an error in computing the likelihood for initial parameter values.

ESTIMATION_CHECKS: You should try using the calibrated version of the model as starting values. To do

ESTIMATION_CHECKS: this, add an empty estimated_params_init-block with use_calibration option immediately before the estimation

ESTIMATION_CHECKS: command (and after the estimated_params-block so that it does not get overwritten):

错误使用 print_info (line 48)

Blanchard Kahn conditions are not satisfied: indeterminacy due

to rank failure

出错 print_info (line 48)

error(‘Blanchard Kahn conditions are not satisfied:’

…

出错 initial_estimation_checks (line 69)

print_info(info, DynareOptions.noprint, DynareOptions)

出错 dynare_estimation_1 (line 179)

oo_ =

initial_estimation_checks(objective_function,xparam1,dataset_,M_,estim_params_,options_,bayestopt_,oo_);

出错 dynare_estimation (line 89)

dynare_estimation_1(var_list,dname);

出错 est_model2 (line 333)

dynare_estimation(var_list_);

出错 dynare (line 180)

evalin(‘base’,fname) ;

I type model_diagnostics(M_,options_,oo_) but no result come.

Could you do me a favor to identiy the mistake?

Thank you!

five_variable_1992Q2_2015Q4.m (5.46 KB)

est_model2.mod (3.91 KB)