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

**URL:** https://forum.dynare.org/t/some-clue-about-this-rank-condition-isnt-verified/18218
**Category:** Replication Attempts
**Created:** [3 June 2021 03:10 UTC](https://forum.dynare.org/t/some-clue-about-this-rank-condition-isnt-verified/18218 "2021-06-03T03:10:49Z")
**Posts on this page:** 1
**Showing post:** 6

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### Author: ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)
#### Post date: [13 June 2021 10:22 UTC](https://forum.dynare.org/t/some-clue-about-this-rank-condition-isnt-verified/18218/6 "2021-06-13T10:22:53Z")

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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](https://forum.dynare.org/t/levels-versus-growth-rates/5652/8)  
Hardcoding their mean to 1 resolves the collinearity:  
[tc\_calvo\_cap.mod](https://forum.dynare.org/uploads/short-url/7ogJrp8DtA81A1Wn5zU8CPCQPZ3.mod) (6.9 KB)
2. See

> [@Basic New Keynesian model - nonlinear](https://forum.dynare.org/t/basic-new-keynesian-model-nonlinear/15243/9):
>
> Price dispersion is zero up to order=1. At order=2, you really need a lot of replications to get anything smooth.

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