The rank condition is verified?

Dynare help (legacy posts)
1

Dear All,

while stimulating a mcro model with 5 forward looking variables (with a lead (+1)) i get the following message:
"There are 3 eigenvalue(s) larger than 1 in modulus
for 5 forward-looking variable(s)

The rank condition is verified."
How could that be?

2

It can’t be, right?
This is an old bug that should have disppeared from recent versions. Which version of Dynare are you using?

Kind regards

Michel

3

I use Dynare v3