Hi

I am working on with a two sector (consumption and durable goods, Housing) NK model with financial frictions. I have dynare 4.2.0 and 4.2.2 on my desktop at home while I am working with 4.2.4 at my university office desktop. I have observed a strange problem while working at my relatively big model baseline model (56 equations) on these versions. Yesterday I ran a model with 4.2.2 and got the following message “There are 14 eigenvalue(s) larger than 1 in modulus for 14 forward-looking variable(s) The rank condition is verified” but with no impulse responses and moments output. While with 4.2.0 version, I am getting the impulse responses with BK and rank conditions met. However, the problem is that I am getting “NAN” against moments and also getting the following warning.

"There are 14 eigenvalue(s) larger than 1 in modulus

for 14 forward-looking variable(s)

The rank condition is verified.

Warning: Matrix is close to singular or badly scaled.

Results may be inaccurate. RCOND = 7.060769e-033.

In dr1 at 433

In resol at 145

In stoch_simul at 66

In DSGE_FAplus6312 at 606

In dynare at 132

However, with 4.2.4 the same model has returned me the following error message “There are 14 eigenvalue(s) larger than 1 in modulus for 14 forward-looking variable(s). The rank condition is verified. ??? Error using ==> print_info at 45 Blanchard Kahn conditions are not satisfied: indeterminacy due to rank failure”. model_diagnostics(M_,options_,oo_) is not giving me any help either. I have consulted the various relevant posts on rank condition and BK condition and in light of these post I have tried to alter my calibration values but the aforementioned problem still persists. IRFs from 4.2.0 are making some sense but I am worried about the above warning message. My main concern is that can I carry out the main extension in the baseline model in the presence of the aforementioned warning. Can someone suggest me a solution how to get rid of this warning message that would help me in my main extended model (with additional 10 equations). Suggestions/tips in this regards are welcome.

Cheers

Zulfiqar