# Problem on BK conditions not satisfied

**URL:** <https://forum.dynare.org/t/problem-on-bk-conditions-not-satisfied/20814>\
**Category:** Stochastic simulations\
**Created:** [28 July 2022 15:35 UTC](https://forum.dynare.org/t/problem-on-bk-conditions-not-satisfied/20814 "2022-07-28T15:35:39Z")\
**Posts on this page:** 6\
**Page:** 1

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**Author:** ![catnip1997](https://forum.dynare.org/letter_avatar_proxy/v4/letter/c/b38774/32.png) [@catnip1997](https://forum.dynare.org/u/catnip1997)\
**Post date:** [28 July 2022 15:35 UTC](https://forum.dynare.org/t/problem-on-bk-conditions-not-satisfied/20814/1 "2022-07-28T15:35:39Z")

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Hello everyone, I am new on DSGE and dynare. I’ve been working on my thesis recently, and this notice keeps showing up: ‘Blanchard & Kahn conditions are not satisfied: no stable equilibrium.’

 ![image](https://forum.dynare.org/uploads/default/original/2X/e/eb39cc86711e716a73c359769fb6b762126c6bd6.png)  
I wonder why this happen? I’ve checked my work on linearization and model, at least there is no mistake with calculation(I suppose). Please tell me how can I fix errors, I would very much appreciate that. My codes are attached below.  
[abc.zip](https://forum.dynare.org/uploads/short-url/qHeveGhjdbhwRu9QKMqnSWvY50B.zip) (3.5 KB)

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**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\
**Post date:** [28 July 2022 19:37 UTC](https://forum.dynare.org/t/problem-on-bk-conditions-not-satisfied/20814/2 "2022-07-28T19:37:01Z")

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Check your timing. In particular, see [Timing of capital in two sector economy](https://forum.dynare.org/t/timing-of-capital-in-two-sector-economy/2325)

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**Author:** ![catnip1997](https://forum.dynare.org/letter_avatar_proxy/v4/letter/c/b38774/32.png) [@catnip1997](https://forum.dynare.org/u/catnip1997)\
**Post date:** [7 August 2022 14:48 UTC](https://forum.dynare.org/t/problem-on-bk-conditions-not-satisfied/20814/3 "2022-08-07T14:48:42Z")

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Problem finally solved. Thanks a lot! I have one new question and I would appreciate your reply.  
The model now shows this warning

 ![error](https://forum.dynare.org/uploads/default/original/2X/2/25fe83c42c1a75073acde4fd89b864c98c19d2f6.png)  
Would you please tell me what’s the problem?

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**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\
**Post date:** [8 August 2022 07:44 UTC](https://forum.dynare.org/t/problem-on-bk-conditions-not-satisfied/20814/4 "2022-08-08T07:44:21Z")

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Did you provide a conditional steady state file? If not, you should do so.

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**Author:** ![catnip1997](https://forum.dynare.org/letter_avatar_proxy/v4/letter/c/b38774/32.png) [@catnip1997](https://forum.dynare.org/u/catnip1997)\
**Post date:** [8 August 2022 10:03 UTC](https://forum.dynare.org/t/problem-on-bk-conditions-not-satisfied/20814/5 "2022-08-08T10:03:25Z")

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i’ve already listed the steady state. there is a problem in the original paper that i cannot figure out.

 ![image](https://forum.dynare.org/uploads/default/original/2X/a/a48857b1201bf3136cb0574b8f53631038a83562.png)  
Given a formula like this, in the steady state is there supposed to be:

> beta \* r / (lambda\_z \* pi)=1

However i’ve checked the author gave me and this is not satisfied. So is it the problem of the parameter or i misunderstand the meaning of steady state?

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**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\
**Post date:** [8 August 2022 10:23 UTC](https://forum.dynare.org/t/problem-on-bk-conditions-not-satisfied/20814/6 "2022-08-08T10:23:36Z")

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Without more context and the files, it is impossible to tell.