Can anyone tell me that what should I do when it shows that
Modulus Real Imaginary
0.95 0.95 0
1.005 1.002 0.08288
1.005 1.002 -0.08288
Inf Inf 0
There are 3 eigenvalue(s) larger than 1 in modulus
for 2 forward-looking variable(s)
The rank conditions ISN’T verified!
How can I do in order to meet the rank condition?
Thank you very much
You should (in this order):
] Check your steady state./:m]
] Check that the timing of the variables of your model is correct./:m]
] Check your model./:m]
] Change your model…/:m][/ol]
This is what I do when I have this kind of problem.
You could make additional action:
V Check parameters values
It is often that wrong coefficient at government policy leads to rank condition problems.
Thank you very much for your helps