# There are 5 eigenvalue(s) larger than 1 in modulus for 4 forward-looking variable(s)

Dear all,

I design a NK model including food and non-food industry. The Dynare shows that “there are 5 eigenvalue(s) larger than 1 in modulus for 4 forward-looking variable(s), the rank condition ISN’T verified, and Blanchard & Kahn conditions are not satisfied: no stable equilibrium.” And I have checked all the timing terms. Could you give me some advice. Thanks alot. My scrip follows as:

``````//endogeneous variables
var c cf cn n nf nn q wf wn pi pif pin mcf mcn y yf yn
r tau af an g;

//exogeneous shocks
varexo er etau ef en eg;

//parameters
parameters eta sigma beta phi rhoc rhon thetac thetan epsf epsn zetaf zetan
mu rhor rhopi rhoy rhog rhotau rhoaf rhoan;

parameters tau_ss yny yfqy cnyn gyn;

// parameter values
eta = 2;
sigma = 2;
beta = 0.99;
phi = 1;
rhoc = 0.28;
rhon = 0.25;
thetac = 0.6;
thetan = 1;
epsf = 6;
epsn = 6;
zetaf = 0.27;
zetan = 0.60;
mu = 0.22;
rhor = 0.75;
rhopi = 1.50;
rhoy = 0.11;
rhog = 0.80;
rhotau = 0.80;
rhoaf = 0.50;
rhoan = 0.80;

tau_ss = 0.05;
yny = 0.759;
yfqy = 0.241;
cnyn = 0.814;
gyn = 0.191;

//model declaration
model(linear);
c=rhoc*cf+(1-rhoc)*cn;
n=rhon*nf+(1-rhon)*nn;
(1/thetac)*cf=(1/thetac)*cn-(tau_ss/(1+tau_ss))*tau-q;
(eta+1/thetan)*n-(1/thetan)*nf=(1/thetac-sigma)*c-(1/thetac)*cn+wf;
(eta+1/thetan)*n-(1/thetan)*nn=(1/thetac-sigma)*c-(1/thetac)*cn+wn;
(1/thetac-sigma)*(c(+1)-c)+(1/thetac)*(cn-cn(+1))-pin(+1)+r=0;
wf=mcf+af;
wn=mcn+an;
pif=(1-zetaf)*(1-zetaf*beta)/zetaf*mcf+beta*pif(+1);
pin=(1-zetan)*(1-zetan*beta)/zetan*mcn+beta*pin(+1);
pi=mu*pif+(1-mu)*pin;
pif-pin=q-q(-1);
y=yny*yn+yfqy*(yf+q);
yf=cf;
yn=cnyn*cn+gyn*g;
yf=af+nf;
yn=an+nn;

r=rhor*r(-1)+(1-rhor)*(rhoy*y+rhopi*pi)+er;
g=rhog*g(-1)+eg;
af=rhoaf*af(-1)+ef;
an=rhoan*an(-1)+en;
tau=rhotau*tau(-1)+etau;

end;
check;

shocks;
var ef; stderr 0.1;
var en; stderr  0.1;
var etau; stderr 0.01;
var eg; stderr 0.01;
var er; stderr 0.1;

end;
stoch_simul(order=1,irf=20);
``````

It’s hard to tell. There is only the generic advice: check the timing, parameter values and equations for errors.
At which step in your model extension does the problem appear?