Two sector model -- Rank condition not satisfied

Dynare help (legacy posts)
1

Dear Dynare users,
a simple problem I guess, but I’m out of ideas:
I have a two sector model (investment and consumption sector) for which I would like to study a labor supply, RPI and TFP shock.
However, Dynare tells me that the rank condition is not satisfied. I have checked the timing and sought for redundant equations, and I also believe that the steady state calculations are correct. So where is my mistake?
I appreciate very much any help.
Best,
Philipp
two_sector_model_1.mod (4.75 KB)

2

You are doing the standard mistake. See [Timing of capital in two sector economy)

3

As always many thanks for your quick and very helpful reply Johannes