The rank condition isn't verified. What caused this problem?

Hi everyone, I am trying to run my model but it always say the rank condition isn’t verified. I do not know what causes this problem. Can you help me?
mylunwen.mod (1.6 KB)

You are missing

predetermined_variables K;

to fix the timing.

2 posts were split to a new topic: Jermann Quadrini (2012) with collateral constraints