The rank condition is verified?

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?

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


I use Dynare v3