Dynare forums

Hi!

I hope somebody can help me with this problem, please.
When I run the file (attached), appears the next error:

"There are 8 eigenvalue(s) larger than 1 in modulus
for 7 forward-looking variable(s)
The rank condition ISN'T verified!

Error using print_info (line 42)
Blanchard Kahn conditions are not satisfied: no stable equilibrium"

But, when I fix the line 26 with "q2(-1) = beta*(C(-1)/C)*(R2+(1-delta)*q2);", the file runs normally.

Somebody know if that change is right?

Thank u so much;
Camilo.

No, that timing is completely wrong. Your problem may be related to the two-sector setup. See http://www.dynare.org/phpBB3/viewtopic.php?f=1&t=3564