The rank condition ISN'T verified!

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The rank condition ISN'T verified!

Postby tristao.tiago » Thu Jan 26, 2017 5:52 pm

Dynare says:

"There are 5 eigenvalue(s) larger than 1 in modulus
for 5 forward-looking variable(s)

The rank condition ISN'T verified!"


Please, someone help me!
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Re: The rank condition ISN'T verified!

Postby jpfeifer » Fri Jan 27, 2017 7:50 am

That one is hard to debug. I can only recommend to simplify the model as much as possible and check when the error goes away.
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
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Re: The rank condition ISN'T verified!

Postby tristao.tiago » Fri Jan 27, 2017 11:51 am

Thank's professor.

Actually, what I was intregued about is that dynare can solve the model whithout log-linearization. However, the log-linearized version goes wrong.
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Re: The rank condition ISN'T verified!

Postby jpfeifer » Mon Jan 30, 2017 9:31 am

Then there must be a mistake in the log-linearization
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
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Posts: 6940
Joined: Sun Feb 21, 2010 4:02 pm
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Re: The rank condition ISN'T verified!

Postby tristao.tiago » Wed Feb 01, 2017 12:35 pm

fair enough.....

Thanks, Im gonna review the log-linearization.
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