Hello,

I’m new using Dynare. I’m working in a calibrated DSGE model.

I have the next message error:

Error using print_info (line 48)

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

Error in stoch_simul (line 98)

print_info(info, options_.noprint, options_);

Error in Tesis_MaestriaL1v4 (line 1345)

info = stoch_simul(var_list_);

Error in dynare (line 180)

evalin(‘base’,fname) ;

I understand that we can’t have more eingenvalues larger than 1 in modulus than forward looking variables. The point is that in the log I have the same amount of eigenvalues larger than 1 in modulus than forrward looking variables.

This is the log message:

There are 15 eigenvalue(s) larger than 1 in modulus

for 15 forward-looking variable(s)

The rank condition ISN’T verified!

Why the rank condition is not satisfied if we have the same amount of eigenvalues larger than 1 in modulus than forward looking variables?

I attached the mod file.

Thanks for your time and help, kind regards. Lautaro

Tesis_MaestriaL1v4.mod (22.1 KB)