hi
i am beginner
when i run my dynare model . dynare show an error in my model and tell
“”"""
There are 9 eigenvalue(s) larger than 1 in modulus
for 9 forward-looking variable(s)
The rank condition ISN’T verified!
b7.mod (12.9 KB)
“”"""""""""
Dear professors… please help me to solve my problem.
i attach my file here
Dear yuhi,
first of all, it seems like you are entering the model-equations in log-linear form, thus you have to write model(linear);
Then, you get that there is indeterminacy due to a rank failure. There are many entries in this forum to this exact error, e.g. (Help --blanchard kahn conditions).
You should check your model and equations again.
hi
thanks for your gaidance.
but I have a question about this error;
how I can undrestand wich equations have perfect collinearity ?
my model is a financial accelerator model. and enters houselold sector and interbank sector to other equations.
may I have one model (dynare code) that adds these two parts to the BGG model for camparison.
I do not have much time . please help me
I do not know what model you are extending or replicating, only you know that. There can be many reasons for this error, also a timing error in your equations could be the issue. But only from your code it is impossible to see where the mistake is.
I know it is bad if you don’t have much time but you should go back to a simpler version of your model that works and then add one by one e.g. the BGG stuff or banking sector and see what causes the problem. This seems like the only way to find the mistake.
For similar models search the forum and the MMB, maybe you can find something helpful.
I just asked for a similar financial accelerator model (dynare code) that has a housing and interbank market. To compare my model with it … If you can, thank you for sending it to me … I can’t find the defect of the model …no matter what I do…I’m really disappointed …thank you
Did you have a look at Iacoviello/Neri? Their code should be available at Iacoviello’s website.
Dear jpfeifer，Could you tell me what the URL of Iacoviello’s website is?