Blanchard Kahn condition: indeterminacy
Posted: Thu May 19, 2011 3:02 amHello,
I am working on simple RBC model with fiscal policy. I added to my model indvisible labor and wanted to see effects of increase in public consumption financed by proportional tax on labor and I cant run this simulation with DYNARE.
it says:
Blanchard Kahn conditions are not satisfied: indeterminacy
Help needed. Thanks in advance.
I am working on simple RBC model with fiscal policy. I added to my model indvisible labor and wanted to see effects of increase in public consumption financed by proportional tax on labor and I cant run this simulation with DYNARE.
it says:
Blanchard Kahn conditions are not satisfied: indeterminacy
Help needed. Thanks in advance.