I am trying to run a DSGE model based on dynare but I am receveing the following error:
[quote]There are 6 eigenvalue(s) larger than 1 in modulus
for 7 forward-looking variable(s)
The rank conditions ISN’T verified!
??? Error using ==> print_info at 43
Blanchard Kahn conditions are not
Error in ==> stoch_simul at 81
Error in ==> MCF at 217
info = stoch_simul(var_list_);
Error in ==> dynare at 120
I tried to change my parameters values following the literature, I checked my equation but I still have this error message.
Can someone give me a clue or a way to fix the Blanchard Kahn conditions?
Thanks a lot.
MCF.m (6.47 KB)