Non-verified rank&Singular Jacobian of the static model

Dynare contributions and examples
1

Dear All,
In my log-linearized medium size DSGE model, I receive the following error messages:

There are 23 eigenvalue(s) larger than 1 in modulus
for 17 forward-looking variable(s)

The rank conditions ISN’T verified!

Error using print_info (line 39)
Blanchard Kahn conditions are not satisfied: no stable equilibrium

Error in stoch_simul (line 71)
print_info(info, options_.noprint);

Error in deneme_stoch (line 580)
info = stoch_simul(var_list_);

Error in dynare (line 120)
evalin(‘base’,fname) ;

>> model_diagnostics(M_,options_,oo_)
The following endogenous variables aren’t present at the current period in the model:
KN
KD
model_diagnostic: the Jacobian of the static model is singular
there is 1 colinear relationships between the variables and the equations
Colinear variables:
YN
U
KN
L_N
YD
KD
LD
RK
WN
pN
WD
pD
K
N
C
CT
CN
CD
CM
pT
pM
I
ID
IM
p_I
LAMBDA
Q
CDSTAR
X
ZIE
P
S
Uc
AUX_ENDO_LAG_6_1
AUX_ENDO_LAG_9_1
Colinear equations
21 22 65

**As Blanchard Kahn conditions are not satisfied, I guess the problem is about the values of the parameters (I have checked each equation and log-linearization process several times).
Any advice to handle the problem is appreciated!

Thanks,**

2

It’s not about the parameters but about your timing. As model_diagnostics says:

The following endogenous variables aren't present at the current period in the model: KN KD
For at least those two variables, there is a timing problem. If the K stands for capital, take a look at Dynare’s timing convention for predetermined variables in the manual.