# Blanchard & Kahn conditions are not satisfied: indeterminacy due to rank failure

**URL:** <https://forum.dynare.org/t/blanchard-kahn-conditions-are-not-satisfied-indeterminacy-due-to-rank-failure/22116>\
**Category:** Steady state\
**Created:** [19 March 2023 14:32 UTC](https://forum.dynare.org/t/blanchard-kahn-conditions-are-not-satisfied-indeterminacy-due-to-rank-failure/22116 "2023-03-19T14:32:13Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![MLOTB](https://forum.dynare.org/letter_avatar_proxy/v4/letter/m/51bf81/32.png) [@MLOTB](https://forum.dynare.org/u/MLOTB)\
**Post date:** [19 March 2023 14:32 UTC](https://forum.dynare.org/t/blanchard-kahn-conditions-are-not-satisfied-indeterminacy-due-to-rank-failure/22116/1 "2023-03-19T14:32:13Z")

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Hello everyone,

When I simulated the DSGE model, I found this problem: “Blanchard & Kahn conditions are not satisfied: indeterminacy due to rank failure.” And this message appeared:  
There are 4 eigenvalue(s) larger than 1 in modulus  
for 4 forward-looking variable(s)

```
   The rank condition ISN'T verified!

```

Could someone help me to clarify this? Any help would be much appreciated.

And the mod file is attached.

[code12\_forhelp.mod](https://forum.dynare.org/uploads/short-url/4rdBePnzmRRrkzI5mXtIFQPjv76.mod) (4.6 KB)

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**Author:** ![MLOTB](https://forum.dynare.org/letter_avatar_proxy/v4/letter/m/51bf81/32.png) [@MLOTB](https://forum.dynare.org/u/MLOTB)\
**Post date:** [20 March 2023 10:08 UTC](https://forum.dynare.org/t/blanchard-kahn-conditions-are-not-satisfied-indeterminacy-due-to-rank-failure/22116/2 "2023-03-20T10:08:10Z")

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I saw many people saying that the BK conditions are not satisfied due to timing. I corrected my equation regarding K, but there are still problems, and the error message “stoch\_simul: using order = 1 because Hessian is equal to zero” appeared.

[code12\_forhelp.mod](https://forum.dynare.org/uploads/short-url/8yAow1gMsYFuugT6wYHnSIt6ywc.mod) (4.5 KB)

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**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\
**Post date:** [20 March 2023 14:55 UTC](https://forum.dynare.org/t/blanchard-kahn-conditions-are-not-satisfied-indeterminacy-due-to-rank-failure/22116/3 "2023-03-20T14:55:04Z")

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You may have the issue at

> [@Timing of capital in two sector economy](https://forum.dynare.org/t/timing-of-capital-in-two-sector-economy/2325):
>
> Hello all, I am building a two-sectoral model, and I have a question about the timing of sectoral-capital variables: In my model, T and N are sectors, hence kT is capital in sector T and kN is capital in sector N. Then, I assume that the economy’s aggregate capital is simply: k = kT + kN. However, I assume only one law of motion for aggregate capital such that: k = (1-delta)\*k(-1) + i - written in Dynare language. It is clear to me that k is a predetermined variable and should be treated as su…

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**Author:** ![MLOTB](https://forum.dynare.org/letter_avatar_proxy/v4/letter/m/51bf81/32.png) [@MLOTB](https://forum.dynare.org/u/MLOTB)\
**Post date:** [25 March 2023 04:01 UTC](https://forum.dynare.org/t/blanchard-kahn-conditions-are-not-satisfied-indeterminacy-due-to-rank-failure/22116/5 "2023-03-25T04:01:32Z")

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Thank you ，professor. I have solved my problem.