Dear J. Pfeifer,
I switched to using Dynare 4.5 and corrected the errors in the three equations but now a new error has emerged with respect to the Blanchard Kahn conditions. See;
here are 7 eigenvalue(s) larger than 1 in modulus
for 8 forward-looking variable(s)
The rank condition ISN’T verified!
Error using print_info (line 45)
Blanchard Kahn conditions are not satisfied: indeterminacy
Error in stoch_simul (line 95)
print_info(info, options_.noprint, options_);
Error in Oil (line 700)
info = stoch_simul(var_list_);
Error in dynare (line 223)
I have read through earlier threat on indeterminacy due to Blanchard Kahn condition but I can’t trace which equation is generating the error. Can you help? The revised codes are attached.
I appreciate your support.Oil.mod (22.6 KB)Oil_steadystate.m (8.5 KB)