The rank condition ISN'T verified!

Dynare help (legacy posts)
1

Hi ,
I am getting an error message :

There are 4 eigenvalue(s) larger than 1 in modulus
for 4 forward-looking variable(s)

The rank condition ISN’T verified!

I don’t know what the issue is. How can I fix this? Any suggestion will be very appreciate.
Many thanks.
model11_steadystate.m (2.27 KB)
model11.mod (2.25 KB)

2

Running model_diagnostics returns:

[quote]model_diagnostic: the Jacobian of the static model is singular
there is 1 colinear relationships between the variables and the equations
Colinear variables:
ci
cs
ki
ks
bi
bs
q
r
mu
w
rb
BETAi
BETAs
Colinear equations
3 5 10 12 13

The presence of a singularity problem typically indicates that there is one
redundant equation entered in the model block, while another non-redundant equation
is missing. The problem often derives from Walras Law.[/quote]

3

Thank you very much.
It works now…