# Rank condition not verified

**URL:** <https://forum.dynare.org/t/rank-condition-not-verified/3226>\
**Category:** Dynare help (legacy posts)\
**Created:** [14 June 2013 11:25 UTC](https://forum.dynare.org/t/rank-condition-not-verified/3226 "2013-06-14T11:25:40Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![kraube](https://forum.dynare.org/letter_avatar_proxy/v4/letter/k/76d3ee/32.png) [@kraube](https://forum.dynare.org/u/kraube)\
**Post date:** [14 June 2013 11:25 UTC](https://forum.dynare.org/t/rank-condition-not-verified/3226/1 "2013-06-14T11:25:40Z")

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I added capital utilization to a previously working model and now I get the following error:

There are 8 eigenvalue(s) larger than 1 in modulus  
for 9 forward-looking variable(s)

The rank conditions ISN’T verified!

What can I do about it? I attached the mod-file.

Thanks in advance for your help!  
[taxshocks.mod](https://forum.dynare.org/uploads/default/original/2X/9/90fc49984576e10ed9f30154d4c4e346c630dc85.mod) (3.32 KB)

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**Author:** ![mghazias](https://forum.dynare.org/letter_avatar_proxy/v4/letter/m/34f0e0/32.png) [@mghazias](https://forum.dynare.org/u/mghazias)\
**Post date:** [16 June 2013 03:24 UTC](https://forum.dynare.org/t/rank-condition-not-verified/3226/2 "2013-06-16T03:24:16Z")

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This happens mostly because of timing mistakes,  
should check the timing of interest rate, capital and utilization rate first.

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**Author:** ![kraube](https://forum.dynare.org/letter_avatar_proxy/v4/letter/k/76d3ee/32.png) [@kraube](https://forum.dynare.org/u/kraube)\
**Post date:** [17 June 2013 14:48 UTC](https://forum.dynare.org/t/rank-condition-not-verified/3226/3 "2013-06-17T14:48:27Z")

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Thank you very much for your reply.

I found the problem: The impact of capital utilization on the depreciation rate in the investment definition was missing. It seems to work now.

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**Author:** ![ptr](https://forum.dynare.org/letter_avatar_proxy/v4/letter/p/91b2a8/32.png) [@ptr](https://forum.dynare.org/u/ptr)\
**Post date:** [16 October 2013 09:04 UTC](https://forum.dynare.org/t/rank-condition-not-verified/3226/4 "2013-10-16T09:04:00Z")

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Hi Kraube,

Am also experiencing the same error. I’ve gone through the mode again and again with no success.

What could be the problem with my attached code?

Thanks in advance.

Ptr  
[CC4.mod](https://forum.dynare.org/uploads/default/original/2X/1/1bd4f6390656fe3781ecedba58e0bd6ada50432e.mod) (5.45 KB)