Please help: Eigenvalues and BK


#1

Dear all,
I don’t know what to do:

"There are 15 eigenvalue(s) larger than 1 in modulus
for 14 forward-looking variable(s)

The rank condition ISN’T verified!
Blanchard Kahn conditions are not satisfied: no stable equilibrium

MODEL_DIAGNOSTICS: No obvious problems with this mod-file were detected.
Informations about ldg (dynamic model)"
LDG.mod (14.0 KB)

Someone is able to help me with this problem??
Thank You


#2

You need to check the timing of your model and potentially the sectoral structure. Search the forum for post related to the latter issue.