Dynare forums

Hi all!!!

I am trying to find the path in a deterministic Ramsey planner problem. The steady state exists for the parameters that I use (I have found the steady state in maple which change for different values of the parameters). The following message appears:

There are 8 eigenvalue(s) larger than 1 in modulus
for 10 forward-looking variable(s)

The rank conditions ISN'T verified!

The results are:

Residuals of the static equations:

Equation number 1 : 0
Equation number 2 : 0
Equation number 3 : 0
Equation number 4 : 0
Equation number 5 : 0
Equation number 6 : 0
Equation number 7 : 0
Equation number 8 : 0
Equation number 9 : 0
Equation number 10 : 0
Equation number 11 : 0
Equation number 12 : 0



STEADY-STATE RESULTS:

n 0.595731
c 0.468489
k 1.7547
Q 1.57442
g 0.206926
taul 0.273417
tauk 0.181818
chi 1.76807
lambda 0.0339384
zeta 1.69365
psi 0.0445827
xi 0.094949

EIGENVALUES:
Modulus Real Imaginary

0.00182 0.00182 0
0.8157 0.8157 0
0.9059 0.9059 0
1.138 1.138 0
1.272 1.272 0
117.1 117.1 0
Inf Inf 0
Inf Inf 0
Inf Inf 0
Inf Inf 0
Inf Inf 0


There are 8 eigenvalue(s) larger than 1 in modulus
for 10 forward-looking variable(s)

The rank conditions ISN'T verified!

-----------------------------------------------------
MODEL SIMULATION :

1 - err = 12.7636
Time of iteration :0.298
2 - err = 9.5394
Time of iteration :0.618
3 - err = 4.3254
Time of iteration :0.661
4 - err = 20.5859
Time of iteration :0.458
5 - err = 18.4603
Time of iteration :0.429
6 - err = 37.2857
Time of iteration :0.4
7 - err = 37.1175
Time of iteration :0.404
8 - err = 16.642
Time of iteration :0.481
9 - err = 16.4293
Time of iteration :0.394
10 - err = 212.125
Time of iteration :0.392

Total time of simulation :4.6

WARNING : maximum number of iterations is reached (modify options_.maxit_).

-----------------------------------------------------
Total computing time : 0h00m09s
>>

I have done everything suggested in similar posts, but nothing seems to work. Any answers, comments, clues will be kindly seen!!!

I attach the mod file.

Unless you use the predetermined_variables command, your code like

Code: Select all

Alpha*k^alpha*n^(1-alpha)-g+(1-deltak)*k-c-k(+1) =0;

violates the Dynare timing convention. See the manual on how predetermined states like capital and bonds have to be entered.

Dear jpfeifer,

Problem solved!!!

Thank you for the excellent software and comment!!!

Kind regards,

Maria_ios