Erro The rank condition ISN'T verified!

Stochastic simulations
1

Hi all!
I’ve figured out some parameter value problems and still have Rank condition problem.
I’ve already checked time set, but still doesn’t work properly.

Dynare syas:
There are 5 eigenvalue(s) larger than 1 in modulus
for 5 forward-looking variable(s)

The rank condition ISN’T verified!

Unrecognized function or variable ‘moldel_info’.
Error in code0925_3.driver (line 574)
moldel_info;
Error in dynare (line 281)
evalin(‘base’,[fname ‘.driver’]);

anyone can help me
Thanks in advance!

code0925_3.mod (5.2 KB)

2
  1. Equation 16 is wrongly linearized. There should be no constant related to S.
  2. k(-1)=kw(-1); is a weird timing that is most probably incorrect.
3

Hello, professor,
Thank you so much for your reply. your comment was right, so I revised those equations.
and it seems like it’s working well this time, because I’ve got figures and results,
but I checked steady-state results and found that all the results are 0.
how is it possible? can you tell me how I should fix this problem?
thanks in advance!
STEADY-STATE RESULTS:

cw 0
h 0
k 0
b 0
y 0
w 0
mc 0
i 0
c 0
hw 0
kw 0
iw 0
bw 0
taow 0
paistar 0
F1 0
F2 0
pai 0
vp 0
Y 0
Rb 0
tao 0
g 0
ig 0
rn 0
rk 0
v 0
lamda 0
kg 0

code0925_4.mod (5.2 KB)

4

Your model is linear and in deviations from steady state. Hence, at the steady state, all deviations from steady state are 0, which is now the case. Your steady state is now correct.

5

I see, I thought I made a mistake so that’s why my steady-state values are zero.
Here is one more question, if my model is non-linear then steady-state values will be non-zero values??
Thank you so much, professor! your reply helps me a lot!!

6

Typically, the answer is yes. If the variables are measured in levels, their steady state is non-zero.

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