# What is the problem? "Blanchard & Kahn conditions"

Hello, I got an error message saying that
" Blanchard & Kahn conditions are not satisfied: indeterminacy.".

But I think that the steady state which I compute is not wrong, and I don’t know what is the problem.

I need help.

``````var w r c n k y I g;

varexo e;

parameters upsilon alpha sigma delta beta rho sigmag;
upsilon = 0.92;
alpha = 0.64;
sigma = 2.5;
delta = 0.0261;
beta = 0.9926;
rho = 0.9;
sigmag = 0.01;

model;
w = alpha * n^(alpha-1) * (k(-1))^(1-alpha);
r = (1-alpha) * n^(alpha) * (k(-1))^(-alpha);
w * n = -c * (1+upsilon) * (1-sigma)^(-1);
beta * (c(+1))^(-sigma) * (n(+1))^(1+upsilon) * (r(+1) + 1 - delta) = c^(-sigma) * n^(1+upsilon);
y = c + i + g;
y = n^(alpha) * (k(-1))^(1-alpha);
i = k - (1-delta)*(k(-1));
g(+1) = (1-rho)*0.22*y + rho*g + e;
end;

initval;
w = 2.41914246;
r = 0.03355517;
c = 0.6331835;
n = 1/3;
k = 13.5907;
y = 1.26677284;
i = 0.35471727;
g = 0.27869002;
end;

shocks;
var e = sigmag^2;
end;

``````g = (1-rho)*0.22*y + rho*g(-1) + e;
Also, shouldn’t it be `steady_state(y)` ?