Wanna help with "BK:indeterminacy due to rank failure"

Dynare help (legacy posts)
1

hi, I am working on a model with limited-participation with two sector.
But the result its indeterminacy due to rank failure:
There are 9 eigenvalue(s) larger than 1 in modulus
for 9 forward-looking variable(s)

The rank condition ISN’T verified!
print_info (line 48)
Blanchard Kahn conditions are not satisfied:
indeterminacy due to rank failure.

The eigenvalue(s) match the forward-looking variable(s), But it still fails.
When I turn off one sector, It turns out to work right.

Could anyone give me a hand?
limited.mod (6.89 KB)

2

It’s hard to tell. The message essentially tells you that it is impossible to uniquely determine at least two variables in the model. In two-sector models the reason is often that the model uniquely determines the aggregate variable, i.e. the sum of the two sectors, but does not provide information how to allocate the sum to the two sectors. You should check your model and try to find out whether this is the problem.

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