Blanchard-Kahn conditions
Posted: Thu Oct 25, 2012 4:04 pm
I am trying to run a stochastic model, but I keep getting an error message regarding the Blanchard-Kahn condition. Dynare is able to compute the steady state values, but not do anything else. After adding the "check;" command, dynare reports that
"There are 2 eigenvalue(s) larger than 1 in modulus
for 3 forward-looking variable(s)
The rank conditions ISN'T verified!"
Is this something that can fixed with my code or is there an issue with the way the model is set up?
Thanks
Mike
"There are 2 eigenvalue(s) larger than 1 in modulus
for 3 forward-looking variable(s)
The rank conditions ISN'T verified!"
Is this something that can fixed with my code or is there an issue with the way the model is set up?
Thanks
Mike