I m a new user of Dynare, and made a two-country DSGE model for optimal policy.
But when I put it into dynare, it appeared not to work and like follows:
EIGENVALUES:
Modulus Real Imaginary
0 0 0
0.05435 0.05435 0
0.09997 0.09997 0
0.1 0.1 0
0.164 0.164 0
0.8 0.8 0
0.8 0.8 0
0.8 0.8 0
0.8 0.8 0
0.8 0.8 0
0.8 0.8 0
0.8 0.8 0
0.8 0.8 0
0.8 0.8 0
0.8 0.8 0
0.9663 0.9663 0
1 1 0
1.393 1.393 0
1.547 0.7976 1.325
1.547 0.7976 -1.325
Inf Inf 0
Inf Inf 0
Inf -Inf 0
There are 6 eigenvalue(s) larger than 1 in modulus
for 7 forward-looking variable(s)
The rank conditions ISN’T verified!
??? Error using ==> print_info at 42
Blanchard Kahn conditions are not satisfied: indeterminacy
Error in ==> stoch_simul at 46
print_info(info, options_.noprint);
Error in ==> fiscal at 376
info = stoch_simul(var_list_);
Error in ==> dynare at 132
evalin(‘base’,fname) ;
I v attached the mod file. Could someone give me some advise. THX a lot!!!
fiscal.mod (2.83 KB)