I read the dynare manual, it says that if the number of eigenvalues equals to the number of forward-looking variables, the rank conditions should be satisfied. How come in my case, it does not?

Attached is my dynare code, if you run it, the result is:

```
There are 8 eigenvalue(s) larger than 1 in modulus
for 8 forward-looking variable(s)
The rank conditions ISN'T verified!
```

what’s wrong with the code?

best wishes!

justin

paper2b.mod (2.58 KB)