Hello, could you please someone help me. It’s really urgent. I have a nonlinear model where the household chooses sequences of consumption (c), labor hours (h), and shares (s) in firms to maximize the expected lifetime utility and the firm chooses labor input (n_t), investment (i_t), and capital (…

Thanks for the links. However, I changed the model a little bit and now it is telling me that - There is 5 eigenvalue(s) larger than 1 in modulus for 4 forward-looking variable(s) and The rank condition ISN’T verified. I am not sure what is the problem now since I plugged summary of equilibrium co…

Then you need to carefully debug why that problem arises. Maybe there is a conceptual problem when you plug in.

Dynare Forum

The Jacobian matrix

General DSGE Modeling

jpfeifer 13 June 2022 15:22 2

See

How to Solve this problem as the picture Shows Steady state

Only do the exp()-substitution once the model works. You may want to go for auxiliary variables, see option 3 in Question about understanding irfs in dynare

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