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blanchard-kahn condition

PostPosted: Mon Nov 21, 2011 6:45 am
by Ippei
Hi,

I got a strange error message such that

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

The rank conditions ISN'T verified!

Error using print_info (line 45)
Blanchard Kahn conditions are not satisfied: indeterminacy due to rank failure
-----------------------------------------------------------

It seems that B-K condition is satisfied.
Could you tell me what is going on? Am I missing something very obvious?

Cheers,
Ippei

Re: blanchard-kahn condition

PostPosted: Mon Nov 21, 2011 8:07 am
by jpfeifer
The error message is pretty explicit:

Blanchard Kahn conditions are not satisfied: indeterminacy due to rank failure


There are dozens of forum entries regarding this topic, see e.g. the fifth below your original post: http://www.dynare.org/phpBB3/viewtopic.php?f=1&t=3476