Hi everybody.

We have the following state space form in a DSGE model.

S_{t}=\Psi S_{t-1}+\Omega u_{t}

P_{t}=\Gamma S_{t-1}+ \Lambda u_{t}

And in a total form we have :

Y_{t}=Y^{s} + A S_{t-1}+B u_{t}

We can derive matrix A by this command in Dynare oo_.dr.ghx

In my DSGE model I ordered the variables in dynare according to the decision rule order and the first three variables are static variables. We I derive the matrix A in dynare I can select the rows in relation to the state variables of the model. In my DSGE model this matrix is 6 \times 6 and when I calculate it’s eigenvalues in MATLAB, these eigenvalues are the same with Dynare output (matrix \Psi ). These eigenvalues are less than one. But when I derive matrix \Gamma for explosive part of the system the eigenvalues are not true.They are not more than one. In my DSGE model in the A matrix I derive matrix \Gamma by removing of relation rows of static variables and purely predetermined variables.I derive this matrix for mixed variables and purely forward variables. In my DSGE model this is a 6 \times 6 matrix. I consider the rows of mixed variables and purely forward variables for the \Gamma matrix. In my model matrix A is 12 \times 6 and three first rows are in relation to the static variables. The rows of 4 until 9 are in relation to state variables and matrix \Psi . The rows 7 until 12 are in relation to jumpers or \Gamma matrix. But eigenvalues of the \Gamma matrix are not more than one.

What is wrong in deriving of \Gamma matrix??

Eigenvalues of the \Psi matrix are the same with dynare output results.