# Blanchard Kahn conditions fails in a two-sector & two types of agents model

**URL:** <https://forum.dynare.org/t/blanchard-kahn-conditions-fails-in-a-two-sector-two-types-of-agents-model/11380>\
**Category:** Stochastic simulations\
**Created:** [15 February 2018 02:01 UTC](https://forum.dynare.org/t/blanchard-kahn-conditions-fails-in-a-two-sector-two-types-of-agents-model/11380 "2018-02-15T02:01:51Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![cynthia3861](https://forum.dynare.org/letter_avatar_proxy/v4/letter/c/ecccb3/32.png) [@cynthia3861](https://forum.dynare.org/u/cynthia3861)\
**Post date:** [15 February 2018 02:01 UTC](https://forum.dynare.org/t/blanchard-kahn-conditions-fails-in-a-two-sector-two-types-of-agents-model/11380/1 "2018-02-15T02:01:51Z")

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Dear all!  
I’m currently working on a model. Dynare can report the steady state results, but the Blanchard Kahn conditions fails. Ive checked the timing, but I’m not sure whether something else is wrong.  
Below is the mod file of my model.

Note related:

1. EM is carbon emissions produced by YC(C production sector). Q refers to the general environmental quality. QW & QK refer to environmental quality of workers or capitalists, decreasing with purchase of xW or xK.
2. xW xK cW cK represents consumption of c & x for workers and capitalists. p is the relative price of x to c.

Thank you in advance!

[extend0213.mod](https://forum.dynare.org/uploads/default/original/2X/9/982733ee8fd8e8712d4ac9832180ed89752182cd.mod) (3.0 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:** [19 February 2018 18:39 UTC](https://forum.dynare.org/t/blanchard-kahn-conditions-fails-in-a-two-sector-two-types-of-agents-model/11380/2 "2018-02-19T18:39:26Z")

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It most probably has to do with your timing for capital and the two-sector structure. See

> [@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…