Dynare forums

Dear JpFiefer

I need your help regarding Rank condition...... the error I am getting again and again is
"There are 4 eigenvalue(s) larger than 1 in modulus
for 7 forward-looking variable(s)

The rank condition ISN'T verified!

Error using print_info (line 144)
This case shouldn't happen. Contact the authors of Dynare
Error in stoch_simul (line 98)
print_info(info, options_.noprint, options_);
Error in soepk (line 283)
info = stoch_simul(var_list_);
Error in dynare (line 180)
evalin('base',fname) ; "

What did you change in my mod-file?

I have made many changes to your original model. Like oil has been incorporated in the production function and government spending in the aggregate demand function.

Then you need to move step by step. Always only add one feature and see what breaks the mod-file