“Blanchard & Kahn conditions are not satisfied: indeterminacy.”
How to solve this problem, please
chen_2020.mod (5.0 KB)
What exactly is the paper?
Thank you, Professor. I will check it carefully.
I have solved the above problems, Now I add resid(1) to the code, and the results show that Residuals of the static equations are all not 0. In addition, the results of the model show that
there are 14 eight values (s) larger than 1 in modules
for 14 forward-looking variable(s)
The rank condition ISN’T verified!
Please help me solve this problem. I have tried it for a long time
chen1216_1.mod (5.3 KB)
- Please do not double-post. I deleted the other post.
- With a model that size, I can only give you the generic advice. Recheck every equation for sign and timing mistakes. If that does not help, start with a simpler version that works and see when the problem appears.