There are 14 eigenvalue(s) larger than 1 in modulus for 16 forward-looking variable(s) The rank condition ISN'T verified!

Dear Forum:

I’m solving a DSGE model. I wrote a _steadystate.m file to solve it. I got the following error message:

There are 14 eigenvalue(s) larger than 1 in modulus
for 16 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 95)
print_info(info, options_.noprint, options_);

Error in advan_1 (line 380)
info = stoch_simul(var_list_);

Error in dynare (line 223)
evalin(‘base’,fname) ;

  1. I HAVE CHECKED THE MODEL TIMING for several times and didn’t find any error.

“MODEL_DIAGNOSTICS: No obvious problems with this mod-file were detected.”

  1. I also have checked my _steadystate.m file several times and cant find any error.

May I ask, what else can I do to fix the error?

Pls Help!

dynare advan_1

Configuring Dynare …
[mex] Generalized QZ.
[mex] Sylvester equation solution.
[mex] Kronecker products.
[mex] Sparse kronecker products.
[mex] Local state space iteration (second order).
[mex] Bytecode evaluation.
[mex] k-order perturbation solver.
[mex] k-order solution simulation.
[mex] Quasi Monte-Carlo sequence (Sobol).
[mex] Markov Switching SBVAR.

Using 64-bit preprocessor
Starting Dynare (version 4.5.1).
Starting preprocessing of the model file …
Found 42 equation(s).
Evaluating expressions…done
Computing static model derivatives:

  • order 1
    Computing dynamic model derivatives:
  • order 1
  • order 2
    Processing outputs …
    done
    Preprocessing completed.

Equation solved, fsolve stalled.

fsolve stopped because the relative size of the current step is less than the
default value of the step size tolerance and the vector of function values
is near zero as measured by the default value of the function tolerance.

xx =

0.845463890526310 0.373615678234477

diff =

1.0e-09 *

-0.143971896755322
0.001408984040552

ksi_bar =

0.592600000000000

y_bar =

0.923287116775744

yk_bar =

-2.973063740399636

w_bar =

0.522809550178618

h_bar =

 0

l =

1.999999999987959

l_bar =

0.693147180553925

c_bar =

0.699220286249020

PSI_bar =

-3.469025872917199

g_bar =

0.006128539451615

gi_bar =

 0

PHI_bar =

-0.002772378742956

phi_bar =

-1.823569337447626

z_star_bar =

0.845463890526310

phi_prime_bar =

-0.138148444848059

ia_bar =

-0.682466179715045

i_bar =

-3.469025872917199

integral1_bar =

0.845487744612196

omega_bar =

-0.865864986417838

m_bar =

-0.019490945012991

p_bar =

-0.002630278599082

J_bar =

-0.029630503890886

cu_bar =

0.695416188057187

v_bar =

0.820705043011930

ev_bar =

-7.386345387107374

rf_bar =

0.019490945012991

paip_bar =

-0.014237025401033

paiz_bar =

-1.448233902536468

paiw_bar =

-1.465017067607272e+03

k_bar =

2.787688232653768

paii_bar =

-4.635306943802681e-07

paipp_bar =

-3.094981568204877e-06

paizz_bar =

-0.297964074349585

temp7_bar =

-0.364068969052168

temp8_bar =

0.001162433627821

temp9_bar =

0.334431182602204

Gii_bar =

-1.284218096651644e+02

phi_prime_bar =

-0.138148444848059

STEADY-STATE RESULTS:

da 0.005
x 0
zeta 0
ksi 0.5926
y 0.923287
k 2.78769
yk -2.97306
w 0.52281
h 0
l 0.693147
c 0.69922
PSI -3.46903
g 0.00612854
gi 0
PHI -0.00277238
phi -1.82357
ia -0.682466
i -3.46903
omega -0.865865
varphi 0
Gii -128.422
integral1 0.845488
varphi_omega 0
varphi_omega2 0
p -0.00263028
J -0.0296305
z_star 0.845464
paip -0.014237
paiz -1.44823
paiw -1465.02
paii -4.63531e-07
paizz -0.297964
paipp -3.09498e-06
cu 0.695416
v 0.820705
ev -7.38635
m -0.0194909
rf 0.0194909
phi_prime -0.138148
temp7 -0.364069
temp8 0.00116243
temp9 0.334431

Equation solved, fsolve stalled.

fsolve stopped because the relative size of the current step is less than the
default value of the step size tolerance and the vector of function values
is near zero as measured by the default value of the function tolerance.

xx =

0.845463890526310 0.373615678234477

diff =

1.0e-09 *

-0.143971896755322
0.001408984040552

ksi_bar =

0.592600000000000

y_bar =

0.923287116775744

yk_bar =

-2.973063740399636

w_bar =

0.522809550178618

h_bar =

 0

l =

1.999999999987959

l_bar =

0.693147180553925

c_bar =

0.699220286249020

PSI_bar =

-3.469025872917199

g_bar =

0.006128539451615

gi_bar =

 0

PHI_bar =

-0.002772378742956

phi_bar =

-1.823569337447626

z_star_bar =

0.845463890526310

phi_prime_bar =

-0.138148444848059

ia_bar =

-0.682466179715045

i_bar =

-3.469025872917199

integral1_bar =

0.845487744612196

omega_bar =

-0.865864986417838

m_bar =

-0.019490945012991

p_bar =

-0.002630278599082

J_bar =

-0.029630503890886

cu_bar =

0.695416188057187

v_bar =

0.820705043011930

ev_bar =

-7.386345387107374

rf_bar =

0.019490945012991

paip_bar =

-0.014237025401033

paiz_bar =

-1.448233902536468

paiw_bar =

-1.465017067607272e+03

k_bar =

2.787688232653768

paii_bar =

-4.635306943802681e-07

paipp_bar =

-3.094981568204877e-06

paizz_bar =

-0.297964074349585

temp7_bar =

-0.364068969052168

temp8_bar =

0.001162433627821

temp9_bar =

0.334431182602204

Gii_bar =

-1.284218096651644e+02

phi_prime_bar =

-0.138148444848059

EIGENVALUES:
Modulus Real Imaginary

   4.618e-16        4.618e-16                0
   1.334e-15        1.334e-15                0
   3.949e-15        3.949e-15                0
   1.346e-13       -1.346e-13                0
   1.038e-06       -1.038e-06                0
   2.493e-05        2.493e-05                0
   0.0006031        0.0006031                0
      0.9461           0.9461                0
        0.95             0.95                0
       1.015            1.015                0
       1.025            1.025                0
       107.9            107.9                0
   3.308e+12        3.308e+12                0
   2.633e+15       -2.633e+15                0
   1.377e+17        1.377e+17                0
   7.367e+17       -7.367e+17                0
   3.343e+18        3.343e+18                0
   3.531e+18        3.531e+18                0
   4.505e+18        4.505e+18                0
   1.118e+19        1.118e+19                0
   6.505e+19       -6.505e+19                0
   2.357e+20       -2.357e+20                0
         Inf             -Inf                0

There are 14 eigenvalue(s) larger than 1 in modulus
for 16 forward-looking variable(s)

The rank condition ISN’T verified!

Equation solved, fsolve stalled.

fsolve stopped because the relative size of the current step is less than the
default value of the step size tolerance and the vector of function values
is near zero as measured by the default value of the function tolerance.

xx =

0.845463890526310 0.373615678234477

diff =

1.0e-09 *

-0.143971896755322
0.001408984040552

ksi_bar =

0.592600000000000

y_bar =

0.923287116775744

yk_bar =

-2.973063740399636

w_bar =

0.522809550178618

h_bar =

 0

l =

1.999999999987959

l_bar =

0.693147180553925

c_bar =

0.699220286249020

PSI_bar =

-3.469025872917199

g_bar =

0.006128539451615

gi_bar =

 0

PHI_bar =

-0.002772378742956

phi_bar =

-1.823569337447626

z_star_bar =

0.845463890526310

phi_prime_bar =

-0.138148444848059

ia_bar =

-0.682466179715045

i_bar =

-3.469025872917199

integral1_bar =

0.845487744612196

omega_bar =

-0.865864986417838

m_bar =

-0.019490945012991

p_bar =

-0.002630278599082

J_bar =

-0.029630503890886

cu_bar =

0.695416188057187

v_bar =

0.820705043011930

ev_bar =

-7.386345387107374

rf_bar =

0.019490945012991

paip_bar =

-0.014237025401033

paiz_bar =

-1.448233902536468

paiw_bar =

-1.465017067607272e+03

k_bar =

2.787688232653768

paii_bar =

-4.635306943802681e-07

paipp_bar =

-3.094981568204877e-06

paizz_bar =

-0.297964074349585

temp7_bar =

-0.364068969052168

temp8_bar =

0.001162433627821

temp9_bar =

0.334431182602204

Gii_bar =

-1.284218096651644e+02

phi_prime_bar =

-0.138148444848059

Residuals of the static equations:

Equation number 1 : 0
Equation number 2 : 0
Equation number 3 : 0
Equation number 4 : 0
Equation number 5 : 0
Equation number 6 : 0
Equation number 7 : 0
Equation number 8 : 0
Equation number 9 : 0
Equation number 10 : 0
Equation number 11 : 0
Equation number 12 : 0
Equation number 13 : 0
Equation number 14 : 0
Equation number 15 : 0
Equation number 16 : 0
Equation number 17 : 0
Equation number 18 : 0
Equation number 19 : 0
Equation number 20 : 0
Equation number 21 : 0
Equation number 22 : 0
Equation number 23 : 0
Equation number 24 : 0
Equation number 25 : 0
Equation number 26 : 0
Equation number 27 : 0
Equation number 28 : 0
Equation number 29 : 0
Equation number 30 : 0
Equation number 31 : 0
Equation number 32 : 0
Equation number 33 : 0
Equation number 34 : 0
Equation number 35 : 0
Equation number 36 : 0
Equation number 37 : 0
Equation number 38 : 0
Equation number 39 : 0
Equation number 40 : 0
Equation number 41 : 0
Equation number 42 : 0

Equation solved, fsolve stalled.

fsolve stopped because the relative size of the current step is less than the
default value of the step size tolerance and the vector of function values
is near zero as measured by the default value of the function tolerance.

xx =

0.845463890526310 0.373615678234477

diff =

1.0e-09 *

-0.143971896755322
0.001408984040552

ksi_bar =

0.592600000000000

y_bar =

0.923287116775744

yk_bar =

-2.973063740399636

w_bar =

0.522809550178618

h_bar =

 0

l =

1.999999999987959

l_bar =

0.693147180553925

c_bar =

0.699220286249020

PSI_bar =

-3.469025872917199

g_bar =

0.006128539451615

gi_bar =

 0

PHI_bar =

-0.002772378742956

phi_bar =

-1.823569337447626

z_star_bar =

0.845463890526310

phi_prime_bar =

-0.138148444848059

ia_bar =

-0.682466179715045

i_bar =

-3.469025872917199

integral1_bar =

0.845487744612196

omega_bar =

-0.865864986417838

m_bar =

-0.019490945012991

p_bar =

-0.002630278599082

J_bar =

-0.029630503890886

cu_bar =

0.695416188057187

v_bar =

0.820705043011930

ev_bar =

-7.386345387107374

rf_bar =

0.019490945012991

paip_bar =

-0.014237025401033

paiz_bar =

-1.448233902536468

paiw_bar =

-1.465017067607272e+03

k_bar =

2.787688232653768

paii_bar =

-4.635306943802681e-07

paipp_bar =

-3.094981568204877e-06

paizz_bar =

-0.297964074349585

temp7_bar =

-0.364068969052168

temp8_bar =

0.001162433627821

temp9_bar =

0.334431182602204

Gii_bar =

-1.284218096651644e+02

phi_prime_bar =

-0.138148444848059

MODEL_DIAGNOSTICS: No obvious problems with this mod-file were detected.

Equation solved, fsolve stalled.

fsolve stopped because the relative size of the current step is less than the
default value of the step size tolerance and the vector of function values
is near zero as measured by the default value of the function tolerance.

xx =

0.845463890526310 0.373615678234477

diff =

1.0e-09 *

-0.143971896755322
0.001408984040552

ksi_bar =

0.592600000000000

y_bar =

0.923287116775744

yk_bar =

-2.973063740399636

w_bar =

0.522809550178618

h_bar =

 0

l =

1.999999999987959

l_bar =

0.693147180553925

c_bar =

0.699220286249020

PSI_bar =

-3.469025872917199

g_bar =

0.006128539451615

gi_bar =

 0

PHI_bar =

-0.002772378742956

phi_bar =

-1.823569337447626

z_star_bar =

0.845463890526310

phi_prime_bar =

-0.138148444848059

ia_bar =

-0.682466179715045

i_bar =

-3.469025872917199

integral1_bar =

0.845487744612196

omega_bar =

-0.865864986417838

m_bar =

-0.019490945012991

p_bar =

-0.002630278599082

J_bar =

-0.029630503890886

cu_bar =

0.695416188057187

v_bar =

0.820705043011930

ev_bar =

-7.386345387107374

rf_bar =

0.019490945012991

paip_bar =

-0.014237025401033

paiz_bar =

-1.448233902536468

paiw_bar =

-1.465017067607272e+03

k_bar =

2.787688232653768

paii_bar =

-4.635306943802681e-07

paipp_bar =

-3.094981568204877e-06

paizz_bar =

-0.297964074349585

temp7_bar =

-0.364068969052168

temp8_bar =

0.001162433627821

temp9_bar =

0.334431182602204

Gii_bar =

-1.284218096651644e+02

phi_prime_bar =

-0.138148444848059

Error using print_info (line 45)
Blanchard Kahn conditions are not satisfied: indeterminacy

Error in stoch_simul (line 95)
print_info(info, options_.noprint, options_);

Error in advan_1 (line 380)
info = stoch_simul(var_list_);

Error in dynare (line 223)
evalin(‘base’,fname) ;

Usually, it’s a timing error. But without seeing the mod-file, further diagnostics are impossible.

May I send you mod file by email?

Dear Pfeifer,

I sent you a personal message. I will appreciate any of your help.