>> clear >> aob_policy_regime Starting Dynare (version 5.4). Calling Dynare with arguments: none Starting preprocessing of the model file ... Found 36 equation(s). Evaluating expressions...done Computing static model derivatives (order 1). Computing dynamic model derivatives (order 1). Processing outputs ... done Preprocessing completed. Equation solved. fsolve completed because the vector of function values is near zero as measured by the value of the function tolerance, and the problem appears regular as measured by the gradient. Residuals of the static equations: Equation number 1 : 0 : 1. FOC consumption Equation number 2 : 0 : 2. Euler equation Equation number 3 : 0 : 3. FOC capital utilization Equation number 4 : 0 : 4. FOC capital Equation number 5 : 0 : 5. FOC investment Equation number 6 : 0 : 6. Firm price setting 1 Equation number 7 : 0 : 7. Firm price setting 2 Equation number 8 : 0 : 8. Firm price setting 3 Equation number 9 : 0 : 9. Marginal cost Equation number 10 : 0 : 10. law of motion prices Equation number 11 : 0 : 11. Optimal capital labor ratio(plugged (eq 13) in the place of l) Equation number 12 : 0 : 12. law of motion employment Equation number 13 : 0 : 13. unemployment measure Equation number 14 : 0 : 14. Job finding rate Equation number 15 : 0 : 15. Value of firm Equation number 16 : 0 : 16. recursive representation of nup Equation number 17 : 0 : 17. recursive representation of wp Equation number 18 : 0 : 18. optimal condition for wholesaler Equation number 19 : 0 : 19. Value of work Equation number 20 : 0 : 20. Present value of worker payoff after separation Equation number 21 : 0 : 21. Unemployment value Equation number 22 : 0 : 22. Vacancy filling rate Equation number 23 : 0 : 23. Matching function(with definition of job market tightness) Equation number 24 : 0 : 24. AOB equilibrium equation(Christiano et.al.(2016) eq(26)) Equation number 25 : 0 : 25. Monetary Policy Equation number 26 : 0 : 26. Tax Rule Equation number 27 : 0 : 27. Government budget constraint Equation number 28 : 0 : 28. Resource constraint Equation number 29 : 0 : 29. Aggregate production(plugged (eq 13) in the place of l) Equation number 30 : 0 : 30. LOM Price dispersion term Equation number 31 : 0 : 31. Law of motion for capital Equation number 32 : 0 : 32. Preference Shock Equation number 33 : 0 : 33. UB Shock Equation number 34 : 0 : 34. Investment specific technology Equation number 35 : 0 : 35. Neutral technology Equation number 36 : 0 : 36. Defininition composite technology Equation solved. fsolve completed because the vector of function values is near zero as measured by the value of the function tolerance, and the problem appears regular as measured by the gradient. EIGENVALUES: Modulus Real Imaginary 3.193e-14 3.193e-14 0 0.06781 -0.06781 0 0.12 0.12 0 0.5859 -0.5859 0 0.754 0.754 0 0.7704 0.7596 0.1286 0.7704 0.7596 -0.1286 0.8646 0.8646 0 0.918 0.9179 0.01565 0.918 0.9179 -0.01565 0.95 0.95 0 0.9923 0.9923 0 1.003 1.003 0 1.012 1.012 0 1.043 1.043 0 1.115 1.115 0 1.179 1.179 0 1.208 1.176 0.2781 1.208 1.176 -0.2781 1.322 1.322 0 2.282e+17 -2.282e+17 0 3.233e+19 3.233e+19 0 3.04e+21 3.04e+21 0 4.057e+21 -4.057e+21 0 2.058e+22 -2.058e+22 0 1.554e+23 -1.554e+23 0 3.322e+24 3.322e+24 0 5.711e+25 5.711e+25 0 Inf Inf 0 Inf Inf 0 Inf -Inf 0 There are 19 eigenvalue(s) larger than 1 in modulus for 19 forward-looking variable(s) The rank condition ISN'T verified! Equation solved. fsolve completed because the vector of function values is near zero as measured by the value of the function tolerance, and the problem appears regular as measured by the gradient. MODEL_DIAGNOSTICS: No obvious problems with this mod-file were detected. Equation solved. fsolve completed because the vector of function values is near zero as measured by the value of the function tolerance, and the problem appears regular as measured by the gradient. Error using print_info Blanchard & Kahn conditions are not satisfied: indeterminacy due to rank failure. Error in stoch_simul (line 120) print_info(info, options_.noprint, options_); Error in aob_policy_regime.driver (line 545) [info, oo_, options_, M_] = stoch_simul(M_, options_, oo_, var_list_); Error in dynare (line 278) evalin('base',[fname '.driver']); Error in aob_policy_regime (line 2) dynare aob_policy_regime.mod