# Blanchard & Kahn conditions are not satisfied indeterminacy

**URL:** <https://forum.dynare.org/t/blanchard-kahn-conditions-are-not-satisfied-indeterminacy/18611>\
**Category:** Steady state\
**Created:** [30 July 2021 04:14 UTC](https://forum.dynare.org/t/blanchard-kahn-conditions-are-not-satisfied-indeterminacy/18611 "2021-07-30T04:14:44Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![Haruka](https://forum.dynare.org/letter_avatar_proxy/v4/letter/h/73ab20/32.png) [@Haruka](https://forum.dynare.org/u/Haruka)\
**Post date:** [30 July 2021 04:14 UTC](https://forum.dynare.org/t/blanchard-kahn-conditions-are-not-satisfied-indeterminacy/18611/1 "2021-07-30T04:14:44Z")

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Dear all,  
I receive the error message"Blanchard & Kahn conditions are not satisfied: indeterminacy."  
Residuals of the static equations:

Equation number 1 : 0 : 1.)Household Euler Equation-inter-temporal condition  
Equation number 2 : 0 : 2.)New Keynesian Phillips Curve, NKPC  
Equation number 3 : 0 : 3.)Market equilibrium  
Equation number 4 : 0 : 4.)FOC Capital  
Equation number 5 : 0 : 5.)Technology shocks  
Equation number 6 : 0 : 6.)Taylor rule  
Equation number 7 : -0.00052429 : 7.)Central governemnt revenue  
Equation number 8 : -0.00052429 : 8.)Production function  
Equation number 9 : 0 : 9.)Period Utility function  
Equation number 10 : -0.00058443 : 10.)Marginal cost  
Equation number 11 : 0 : 11.)Total Tax revenue

I have checked my time setting so many times but cannot get any breakthrough.  
Another question is that my residuals are realy close to zero but not equal to zero, but my target is to substitute them into the ramsey optimal policy model, how to modify the `ramsey\_model(instruments=(te),planner\_discount=beta,planner\_discount\_latex\_name=\beta);

```
    stoch_simul(order=1,irf=20,periods=500);
    evaluate_planner_objective;`

```

code in ramsey optimal model appropriately to hold on the tolf=0.001 setting in baseline model ?

The code is attached below, any help is appriciated! 😀  
[Baseline\_Ramsey0730.mod](https://forum.dynare.org/uploads/short-url/vWSu6PhZLV6SzJAC6pYK80SqM5i.mod) (7.1 KB)  
Best reguard  
haruka

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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:** [30 July 2021 18:58 UTC](https://forum.dynare.org/t/blanchard-kahn-conditions-are-not-satisfied-indeterminacy/18611/2 "2021-07-30T18:58:48Z")

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The timing for K and Z was wrong. Use

[Baseline\_Ramsey0730.mod](https://forum.dynare.org/uploads/short-url/iUoPkt34HovgicU10M0DnkleVPT.mod) (7.1 KB)

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**Author:** ![Haruka](https://forum.dynare.org/letter_avatar_proxy/v4/letter/h/73ab20/32.png) [@Haruka](https://forum.dynare.org/u/Haruka)\
**Post date:** [31 July 2021 00:58 UTC](https://forum.dynare.org/t/blanchard-kahn-conditions-are-not-satisfied-indeterminacy/18611/3 "2021-07-31T00:58:19Z")

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Dear professor jpfeifer,  
Many much thanks for the help! 😌 😃 This code works!!!  
Best reguard  
Haruka