I am really getting stuck with the dynare problems now. I will be very pleased if anyone can help with this:
There are 3 eigenvalue(s) larger than 1 in modulus
for 5 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 98)
print_info(info, options_.noprint, options_);
Error in NK_FA2 (line 352)
info = stoch_simul(var_list_);
Error in dynare (line 180)
I am also attaching my .mod file and the paper replicated. I know that these issues have been widely discussed. But, I have spent a few days to solve it, still it does not work.
Financial Accelerator in an estimated New Keynesian Model.pdf (1.9 MB)
NK_FA2.mod (2.8 KB)