Dear all,
Hello, I try to replicate Corsetti, Dedola, and Leduc (2008)'s work about the transmission mechanism of the productivity shocks.
However, I’m not sure where my code went wrong. Dynare just kept sending me this following message….
There are 12 eigenvalue(s) larger than 1 in modulus for 12 forward-looking variable(s)
The rank condition ISN’T verified!
Blanchard Kahn conditions are not satisfied: indeterminacy due to rank failure
I will be very appreciated if anyone could help me.
Thanks a lot.
Susie
CDL2008.mod (23.1 KB)