Hi Dynare expert,
I was modifying models and get the error message:
“There are 10 eigenvalue(s) larger than 1 in modulus for 9 forward-looking variable(s). The rank condition ISN’T verified!”.
I checked the forums, most problems involve less eigenvalues larger than 1 but more forward-looking variables.
I played around with the code, one easy fix is to roll one of my equation forward. (for example, make exp(N)= exp(Ne) to exp(N(+1))= exp(Ne(+1))). But I am not sure this corresponds to correct model dynamics. I am wondering is there something fundamentally wrong?
exp_1.mod (4.26 KB)