I read the dynare manual, it says that if the number of eigenvalues equals to the number of forward-looking variables, the rank conditions should be satisfied. How come in my case, it does not?
Attached is my dynare code, if you run it, the result is:
There are 8 eigenvalue(s) larger than 1 in modulus
for 8 forward-looking variable(s)
The rank conditions ISN'T verified!
what's wrong with the code?
best wishes!
justin