Help with the so-asked Indeterminacy issue

Hello everyone,

I know there are many posts about this topic but I would like to
get some help regarding issues with the Blanchard Kahn conditions.
This is what I get after running my code:

There are 7 eigenvalue(s) larger than 1 in modulus
for 7 forward-looking variable(s)

The rank conditions ISN’T verified!

??? Error using ==> print_info at 46
Blanchard Kahn conditions are not satisfied: indeterminacy due to rank failure

Error in ==> stoch_simul at 81
print_info(info, options_.noprint);

Error in ==> modelo at 483
info = stoch_simul(var_list_);

Error in ==> dynare at 120
evalin(‘base’,fname) ;

Please, if somebody could have a look I will really appreaciate it. I tried to change
timing, variables and still, more or less the same message.
Here I post the .mod file and its steady states file as well (change the extension for .mat)
Thank you very much in advance

Fernando
chapt3ss.m (3.16 KB)
modelo.mod (7.81 KB)

Note that your problem stems from violation of the rank condition, not the BK conditions per se. This suggests that there is a bigger issue than simply parameter values. Apart from that, without knowin the model it is impossible to tell.

Thank you very much, I am still checking what it is the problem, not yet solved :S. Any suggestions to check?