# The rank condition isn't verified! RBC

**URL:** <https://forum.dynare.org/t/the-rank-condition-isnt-verified-rbc/22622>\
**Category:** Steady state\
**Created:** [20 June 2023 23:33 UTC](https://forum.dynare.org/t/the-rank-condition-isnt-verified-rbc/22622 "2023-06-20T23:33:03Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![Diego123](https://forum.dynare.org/letter_avatar_proxy/v4/letter/d/77aa72/32.png) [@Diego123](https://forum.dynare.org/u/Diego123)\
**Post date:** [20 June 2023 23:33 UTC](https://forum.dynare.org/t/the-rank-condition-isnt-verified-rbc/22622/1 "2023-06-20T23:33:04Z")

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Hello,

When trying to run this RBC model with capital and portfolio definition costs, with two equations that follow an AR(1) process (at and nt), I obtain the following set of warnings:

Error using print\_info  
Blanchard & Kahn conditions are not satisfied: indeterminacy.  
Error in stoch\_simul (line 120)  
print\_info(info, options\_.noprint, options\_);  
Error in avancepreg3.driver (line 269)  
[info, oo\_, options\_, M\_] = stoch\_simul(M\_, options\_, oo\_, var\_list\_);  
Error in dynare (line 278)  
evalin(‘base’,[fname ‘.driver’]);

Thanks in advance  
[avancepreg3.mod](https://forum.dynare.org/uploads/short-url/opPziU8mLnTCe5S9kbK7Fw9rNnS.mod) (5.7 KB)

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**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\
**Post date:** [21 June 2023 14:00 UTC](https://forum.dynare.org/t/the-rank-condition-isnt-verified-rbc/22622/2 "2023-06-21T14:00:43Z")

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Check your timing for capital. Having `k(+2)` is very unusual.

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**Author:** ![Diego123](https://forum.dynare.org/letter_avatar_proxy/v4/letter/d/77aa72/32.png) [@Diego123](https://forum.dynare.org/u/Diego123)\
**Post date:** [21 June 2023 14:32 UTC](https://forum.dynare.org/t/the-rank-condition-isnt-verified-rbc/22622/3 "2023-06-21T14:32:52Z")

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Thank you professor. It solved the problem.