Dynare forums

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!

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.

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.

Then there must be a mistake in the log-linearization

fair enough.....

Thanks, Im gonna review the log-linearization.