The DSGE model is two agent model with government spending acting as transfers only (simple model). I have looked at other posts about timing error but it does not seem to be the case here. Is there any solution to the problem?

There are 7 eigenvalue(s) larger than 1 in modulus
for 5 forward-looking variable(s)

I tried a simplified version of my model excluding the unit root process in debt. So I left with issue N2 as you specified. Following your hint, I modified my files. Unfortunately, I still get the same problem.

There are 6 eigenvalue(s) larger than 1 in modulus
for 5 forward-looking variable(s)

The rank condition ISN’T verified!

Total computing time : 0h00m00s

model_diagnostics(M_, options_, oo_)
MODEL_DIAGNOSTICS: No obvious problems with this mod-file were detected. tank2.mod (1.8 KB) tank2_steadystate.m (1.7 KB)

You did not provide the rho_est.data you are loading. Now the problem is less severe. Only one root is still off. Have you tried further simplifying like getting rid of the indexing with respect to inflation?

Anything that simplifies the model makes debugging easier. You don’t know what causes the problem. The usual way of debugging is working from a model that runs and then to add features.