Rank condition is not verified

Dynare help (legacy posts)
1

I am running a medium sized model, but I am getting the error message about my model not respecting the rank condition.

I get the answer that I have a colinearity problem, due to the Walras Law, because of an equation when I run “model_diagnostics(M_,options_,oo_)”.

I am calibrating four additional parameters so I would like to know if the rank condition error could also be because of a calibration problem.

2

It can only be an issue of parameters if the parameter selection you currently use implies that a variable essentially vanishes from the model. That is highly unlikely (usually happens if you set a parameter to 0 to shut off a particular model feature)