I tried lots of ways to run my code, changed the parameter and fixed the equations. but it still doesn’t work.
"There are 3 eigenvalue(s) larger than 1 in modulus
for 4 forward-looking variable(s)
The rank condition ISN’T verified!
Error using print_info (line 45)
Blanchard Kahn conditions are not satisfied: indeterminacy"
Here is my code.
[code]var x pi Ex Epi i u Epi_h Ex_h pi_h x_h;
varexo epsilon;
parameters beta kappa sigma rhou phipi phix alpha;
beta=0.99;
kappa=0.13;
sigma=1;
rhou=0.5;
phipi=1.5;
phix=0.5;
phix_h=0.5;
phipi_h=1.5;
alpha=0.9;
model(linear);
x=alpha*(Ex-(1/sigma)(i-Epi))+(1-alpha)x_h;
pi=betaEpi+kappax;
x_h=Ex_h-(1/sigma)(i-Epi_h)+u; %housing demand
pi_h=betaEpi_h+kappax_h; %Housing price inflation
i=phipipi+phixx;
Ex=x(+1);
Epi= pi(+1);
Ex_h=x_h(+1); %expectation of housing demand
Epi_h=pi_h(+1); %expectation of housing price inflation
u=rhouu(-1)-epsilon; %negative shock
end;
shocks;
var epsilon;
stderr 1;
end;
steady;
check;
stoch_stimul;
[/code]
I really appreciate that if someone can help me!!!