Indeterminacy/Rank failure
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Dear all,
I am currently developing a three country model with oil. I have run into a determinacy problem and now try to find out where it comes from. I have run various versions of the code, for instance a two country version, and also have removed equations which are not necessary for the solution of the model. It seems that it is not simply the number of unstable /stable eivenvalues which is deficient, but that there is a rank failure. I understand that rank failure means that there is redundante equation and hence a missing equation as well. Do you have any suggestions about how I may proceed to detect the problem? I have added the mod file. Your help would be most appreciated!
Best,
Ansgar
I am currently developing a three country model with oil. I have run into a determinacy problem and now try to find out where it comes from. I have run various versions of the code, for instance a two country version, and also have removed equations which are not necessary for the solution of the model. It seems that it is not simply the number of unstable /stable eivenvalues which is deficient, but that there is a rank failure. I understand that rank failure means that there is redundante equation and hence a missing equation as well. Do you have any suggestions about how I may proceed to detect the problem? I have added the mod file. Your help would be most appreciated!
Best,
Ansgar