Hello,
I am trying to solve a two agent household model, where one household has some cost attached to their savings decision, which is the major distinguishing factor between both. When I run my codes I get the following error:
There are 6 eigenvalue(s) larger than 1 in modulus for 6 forward-looking variable(s)
The rank condition ISN’T verified!
DYNARE_SOLVE (solve_algo=2|4): number of blocks = 12
MODEL_DIAGNOSTICS: No obvious problems with this mod-file were detected.
Error using [print_info](matlab:matlab.lang.internal.introspective.errorDocCallback(‘print_info’, ‘U:\dynare-6.4\matlab\print_info.m’, 33)) ([line 33](matlab: opentoline(‘U:\dynare-6.4\matlab\print_info.m’,33,0)))
Blanchard & Kahn conditions are not satisfied: indeterminacy due to rank failure.
I have attached my code file here for the reference.
TANK_friction.mod (4.9 KB)
I would very much appreciate your help if someone could please help me with this.
Regards,
Abhishek