I am doing a deterministic simulation of a New Keynesian model. When setting the inflation response parameter in the Taylor rule to be less than one, I should have indeterminacy. But in my simulation, even though the rank condition is not verified, I still get a result. My question is that how Dynare chooses eigenvalue in the indeterminacy case? Can I choose eigenvalue manually by myself? Following is the simulation message:
There are 16 eigenvalue(s) larger than 1 in modulus
for 17 forward-looking variable(s)
The rank conditions ISN’T verified!
variable m period 1
1- err = 0.22499
err_f = 0.0075637
Time of this iteration : 0.125
variable m period 2
2- err = 3.7746e-017
err_f = 2.7756e-017
Time of this iteration : 0.078
Total time of simulation : 0.281 Convergence achieved.