Some clue about this "rank condition ISN'T verified"

  1. The problem is that you are trying to use the steady_state()-operator on stuff that cannot be endogenously determined (e.g. the mean of exogenous processes). See also Levels versus Growth Rates - #8 by jpfeifer
    Hardcoding their mean to 1 resolves the collinearity:
    tc_calvo_cap.mod (6.9 KB)
  2. See
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