# Eigenvalues with Zero Modulus

**URL:** <https://forum.dynare.org/t/eigenvalues-with-zero-modulus/4055>\
**Category:** Dynare help (legacy posts)\
**Created:** [25 July 2014 05:02 UTC](https://forum.dynare.org/t/eigenvalues-with-zero-modulus/4055 "2014-07-25T05:02:31Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![reubenpjacob](https://forum.dynare.org/letter_avatar_proxy/v4/letter/r/e5b9ba/32.png) [@reubenpjacob](https://forum.dynare.org/u/reubenpjacob)\
**Post date:** [25 July 2014 05:02 UTC](https://forum.dynare.org/t/eigenvalues-with-zero-modulus/4055/1 "2014-07-25T05:02:31Z")

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Hi All  
I am playing with a DSGE model of banking and discovered something strange when I used the check command. Many eigenvalues are zero or very close to zero in modulus. For example,

```
     Modulus Real Imaginary

           0 0 0
           0 -0 -0
           0 -0 -0
           0 -0 -0
           0 -0 -0
   2.956e-18 2.871e-18 -7.009e-19
    9.48e-18 9.471e-18 -4.143e-19
   6.683e-17 -6.682e-17 8.935e-19
   1.116e-16 1.08e-16 2.829e-17
   2.254e-16 2.254e-16 5.296e-19
   2.992e-16 -2.99e-16 1.143e-17
   5.572e-16 5.565e-16 -2.657e-17

```

I am not sure what the implications are. The Blanchard-Kahn conditions are associated with forward looking variables and eigenvalues above unity. But zero eigenvalues…are they problematic? My guess is that it indicates that many variables do not play a role in the dynamics. Perhaps I am wrong.  
Have others experienced the same ‘problem’?

cheers  
Reuben

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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:** [25 July 2014 09:53 UTC](https://forum.dynare.org/t/eigenvalues-with-zero-modulus/4055/2 "2014-07-25T09:53:50Z")

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In terms of modulus, 0 is just a number like any other and indicates nothing problematic. But you are right that a 0 eigenvalue indicates that the model will have less endogenous propagation than one where the eigenvalue would be ceteris paribus bigger in modulus.
