# Rank condition ISNT verified

Dear Helpers,
Dynare tells me “There are 9 eigenvalue(s) larger than 1 in modulus
for 8 forward-looking variable(s)”. I am trying to see where it went wrong but I cannot. The model I present to you is a bit complicated but please I need help. Thank you
Victor

I had the same thing and as people suggested elsewhere, it’s a result of having a redundant equation with a correct one missing. Typically it’s from resource constraints.

That’s not it. It looks like a timing problem. To me,

```r=s-s(+1)+rfshock; ```
looks weird as r depends on the expectations of tomorrow’s s. Using this in the Euler equation with timing r might be the source of the problem.

[quote=“jpfeifer”]That’s not it. It looks like a timing problem. To me,

```r=s-s(+1)+rfshock; ```
looks weird as r depends on the expectations of tomorrow’s s. Using this in the Euler equation with timing r might be the source of the problem.[/quote]

Please Sir, how do you suggest I correct it? Have been trying to see the variables that have eigenvalues greater than 1 but I don’t know my way around dynare very much. Thank you.

You are the model builder. There is one and only one timing that economic logic is going to dictate. You need to find it. All I am saying is that your original model equation most probably does not say

r_t=s_t E_t(s_{t-1})+rfshock_t

Sidenote: the eigenvalues are about the system of variables, not individual ones. The BK conditions are almost always about a wrong timing of variables.

1 Like

[quote=“jpfeifer”]You are the model builder. There is one and only one timing that economic logic is going to dictate. You need to find it. All I am saying is that your original model equation most probably does not say

r_t=s_t E_t(s_{t-1})+rfshock_t

Sidenote: the eigenvalues are about the system of variables, not individual ones. The BK conditions are almost always about a wrong timing of variables.[/quote]

I am back to the drawing board sir. Thank you. I will keep you posted.

I have corrected my earlier issues as advised by jpfeifer. I thank you very much on this issue. I now have another issue where I post the code. I have a pair of non-stationary shocks which goes to (-2). And with that, dynare couldnt solve the GHX and GHU. please see the code
Thank you

With the noprint option of stoch_simul, you shut off all error messages. But as your model does not run, the decision rules you are trying to access could not be computed. The problem is that the steady state could not be computed.
If you put

before stoch_simul you will see that given your 0 initial values you still get

```Equation number 13 : -0.5 Equation number 14 : -0.5```
As your model is loglinearized, this suggests that there is still a mistake in those equations.