Rank conditions

Hi all!!!

I am trying to find the path in a deterministic Ramsey planner problem. The steady state exists for the parameters that I use (I have found the steady state in maple which change for different values of the parameters). The following message appears:

There are 8 eigenvalue(s) larger than 1 in modulus
for 10 forward-looking variable(s)

The rank conditions ISN’T verified!

The results are:

Residuals of the static equations:

Equation number 1 : 0
Equation number 2 : 0
Equation number 3 : 0
Equation number 4 : 0
Equation number 5 : 0
Equation number 6 : 0
Equation number 7 : 0
Equation number 8 : 0
Equation number 9 : 0
Equation number 10 : 0
Equation number 11 : 0
Equation number 12 : 0

STEADY-STATE RESULTS:

n 0.595731
c 0.468489
k 1.7547
Q 1.57442
g 0.206926
taul 0.273417
tauk 0.181818
chi 1.76807
lambda 0.0339384
zeta 1.69365
psi 0.0445827
xi 0.094949

EIGENVALUES:
Modulus Real Imaginary

     0.00182          0.00182                0
      0.8157           0.8157                0
      0.9059           0.9059                0
       1.138            1.138                0
       1.272            1.272                0
       117.1            117.1                0
         Inf              Inf                0
         Inf              Inf                0
         Inf              Inf                0
         Inf              Inf                0
         Inf              Inf                0

There are 8 eigenvalue(s) larger than 1 in modulus
for 10 forward-looking variable(s)

The rank conditions ISN’T verified!


MODEL SIMULATION :

1 - err = 12.7636
Time of iteration :0.298
2 - err = 9.5394
Time of iteration :0.618
3 - err = 4.3254
Time of iteration :0.661
4 - err = 20.5859
Time of iteration :0.458
5 - err = 18.4603
Time of iteration :0.429
6 - err = 37.2857
Time of iteration :0.4
7 - err = 37.1175
Time of iteration :0.404
8 - err = 16.642
Time of iteration :0.481
9 - err = 16.4293
Time of iteration :0.394
10 - err = 212.125
Time of iteration :0.392

 Total time of simulation        :4.6

WARNING : maximum number of iterations is reached (modify options_.maxit_).


Total computing time : 0h00m09s

I have done everything suggested in similar posts, but nothing seems to work. Any answers, comments, clues will be kindly seen!!!

I attach the mod file. :slight_smile:
example4.mod (3.5 KB)

Unless you use the predetermined_variables command, your code like

violates the Dynare timing convention. See the manual on how predetermined states like capital and bonds have to be entered.

Dear jpfeifer,

Problem solved!!! :bulb: :stuck_out_tongue:

Thank you for the excellent software and comment!!!

Kind regards,

Maria_ios