Help with Blanchard and Kahn conditions

Dynare help (legacy posts)
1

Hello,

I’m trying to replicate Curdia, Chen and Ferrero’s (2012) paper (Link to the paper: frbsf.org/economic-research/files/wp12-22bk.pdf; link to technical appendix: onlinelibrary.wiley.com/store/10.1111/j.1468-0297.2012.02549.x/asset/supinfo/ecoj2549_sm_Appendix.pdf?v=1&s=cab4f91ddeddf4ae873c6bfcd9aa56f81a9ef087 (if you cannot access this, I can also upload it)).

However, I’m getting that the BK conditions are not satisfied, more specifically:

[quote]
Error using print_info (line 43)
Blanchard Kahn conditions are not satisfied: indeterminacy

Error in stoch_simul (line 81)
print_info(info, options_.noprint);

Error in ccf (line 565)
info = stoch_simul(var_list_);

Error in dynare (line 120)
evalin(‘base’,fname) ;[/quote]

I have checked and rechecked my equations, but I still can’t figure out what’s going on. Can someone please help? I’m uploading the code.

Many thanks in advance,
Matheus
ccf.mod (9.7 KB)

2

This is a cleaner version of the previous code. I rewrote all the equations, to guarantee my problem wasn’t due to a typo.

I’m still missing one eigenvalue though.

Any help would be greatly appreciated.

Thanks in advance,
Matheus
ccf.mod (6.26 KB)