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I have a code and the check command indicates the rank condition is satisfied; however, the stoch_simul command indicates the rank condition is not satisfied? What could be the problem? Below is the message from Dynare 4.2

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

The rank condition is verified.

??? Error using ==> print_info at 39
Blanchard Kahn conditions are not satisfied: no stable equilibrium

Error in ==> stoch_simul at 71
print_info(info, options_.noprint);

Error in ==> cdl_v1 at 318
info = stoch_simul(var_list_);

Error in ==> dynare at 132
evalin('base',fname) ;

I also attach my code here

Using Dynare 4.2.2, I get the following message on your model:

Code: Select all

One of the eigenvalues is is close to 0/0 (the absolute value of numerator and
denominator is smaller than 1e-6).

Error in check (line 51)
    print_info(info, options_.noprint);

Error in cdl_v1 (line 304)
check;


So it does not pass the "check" command.

Best,