Dynare forums

Hello guys,
I'm a new user of the dynare.
I got error messages while replicating a basic RBC model.

>> dynare rbc

Configuring Dynare ...
[mex] Generalized QZ.
[mex] Sylvester equation solution.
[mex] Kronecker products.
[mex] Sparse kronecker products.
[mex] Local state space iteration (second order).
[mex] Bytecode evaluation.
[mex] k-order perturbation solver.
[mex] k-order solution simulation.
[mex] Quasi Monte-Carlo sequence (Sobol).

Starting Dynare (version 4.3.0).
Starting preprocessing of the model file ...
Found 6 equation(s).
Evaluating expressions...done
Computing static model derivatives:
- order 1
Computing dynamic model derivatives:
- order 1
- order 2
Processing outputs ...done
Preprocessing completed.
Starting MATLAB/Octave computing.


STEADY-STATE RESULTS:

y 0
c 0
k 0
n 0
lambda 0
z 0

EIGENVALUES:
Modulus Real Imaginary

0.9186 0.9186 0
0.95 0.95 0
1.1 1.1 0
Inf Inf 0
Inf Inf 0


There are 3 eigenvalue(s) larger than 1 in modulus
for 4 forward-looking variable(s)

The rank conditions ISN'T verified!

Error using print_info (line 43)
Blanchard Kahn conditions are not satisfied: indeterminacy

Error in stoch_simul (line 81)
print_info(info, options_.noprint);

Error in rbc (line 137)
info = stoch_simul(var_list_);

Error in dynare (line 120)
evalin('base',fname) ;



Thank you for replying in advance.
Best

Please post the mod-file

Sorry, I attached the file.

You are violating Dynare's timing convention for predetermined variables, see the manual. Capital is a predetermined state. Either use the predetermined_variables command or shift the capital timing by one period.

Thank you. Now the .mod file works.

However, the result shows the output and employment decreases despite the positive shock.

Why does this happen?

Check your model and in particular if the sign of the Lagrange multiplier is correct and consistent.

Hello. I am having the same issue when trying to model Tack Yun's Optimal Monetary Policy model.

There are 4 eigenvalue(s) larger than 1 in modulus
for 6 forward-looking variable(s)

The rank conditions ISN'T verified!

??? Error using ==> print_info at 42
Blanchard Kahn conditions are not satisfied: indeterminacy

I would appreciate if you could help me find the problem with my mod.
I attach the mod file.

Look into the posted mod-file to see the timing/how the exogenous processes have to be entered.

I changed the equations corresponding to the processes of the exogenous shock to

g=rho_g*g(-1)+e_g;
a=rho_a*a(-1)+e_a;

But still I get the error, now a little better i think

There are 4 eigenvalue(s) larger than 1 in modulus
for 5 forward-looking variable(s)

Anyhow, something is still wrong and I don't know which of the equations are misspecified.
If you could point out which of them may be generating the error message I would appreciate.

Thank a lot

Sorry, I tried but I could not see anything. Actually, the error I am getting is that there is an eigenvalue to close to 0/0.!
In any case, make sure you typed in the model correctly and that the timing of the variables is correct. Also, be careful about the choice of your parametres. I dont know if you can give me some hints about the model I might be able to help you.

Btw, you start with the command: model(linear). Are you typing in the equations already in a log-linearised form?

K.