I am trying to find the steady state of this model but something is going wrong. Here is the message that I’m getting:
There are 8 eigenvalue(s) larger than 1 in modulus
for 11 forward-looking variable(s)
The rank condition ISN’T verified!
Find attached the code.model.mod.txt (3.4 KB)
Dynare finds a steady state. Is that not the correct one?
The error message is about the Blanchard-Kahn conditions. You need to check your timing. For example
MODEL_DIAGNOSTICS: The following endogenous variables aren't present at the current period in the model:
bigomeg
Dear Sir,
I just solve the problem in changing some variables. Thanks!