I am implementing endogenous productivity growth as in Anzoategui et. al. 2017 in a model similar to Iacoviello 2005. I followed the Appendix of the paper closely to implement endogenous productivity growth, but after implementing it in Dynare, I get a following message:
There are 12 eigenvalue(s) larger than 1 in modulus
for 14 forward-looking variable(s)
The rank condition ISN’T verified!
Error using print_info (line 32)
Blanchard & Kahn conditions are not satisfied: indeterminacy.
Can someone please help me and look at my mod file?
I have a deadline approaching soon and I would appreciate your help very much!