I am trying to run the attached NK model with some form of non Ricardian consumers with Dynare (version 4.6.4). The intention is to run the calibrated model first then later run the model with real data. The code runs fine when I exclude the aspect on foreign economy data related equations (last 5 equations). However, I keep getting the error below when I include those equations. I have read a lot of useful solutions on this platform (thanks to @jpfeifer and the team) and understand that the issue is most likely about timing or parameter values. But truth is I have tried for days and I don’t think I know how to fix it. Please help!
HANK_cal_2.mod (7.3 KB)
There are 7 eigenvalue(s) larger than 1 in modulus
for 6 forward-looking variable(s)
The rank condition ISN’T verified!
Error using print_info (line 32)
Blanchard & Kahn conditions are not satisfied: no stable equilibrium.
Error in stoch_simul (line 107)
print_info(info, options_.noprint, options_);
Error in HANK_cal_2.driver (line 577)
[info, oo_, options_, M_] = stoch_simul(M_, options_, oo_, var_list_);
Error in dynare (line 293)
evalin(‘base’,[fname ‘.driver’]) ;