Rank condition not verified

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Rank condition not verified

Postby kraube » Fri Jun 14, 2013 11:25 am

I added capital utilization to a previously working model and now I get the following error:

There are 8 eigenvalue(s) larger than 1 in modulus
for 9 forward-looking variable(s)

The rank conditions ISN'T verified!

What can I do about it? I attached the mod-file.

Thanks in advance for your help!
Attachments
taxshocks.mod
My mod-file
(3.32 KiB) Downloaded 191 times
kraube
 
Posts: 2
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Re: Rank condition not verified

Postby mghazias » Sun Jun 16, 2013 3:24 am

This happens mostly because of timing mistakes,
should check the timing of interest rate, capital and utilization rate first.
mghazias
 
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Re: Rank condition not verified

Postby kraube » Mon Jun 17, 2013 2:48 pm

Thank you very much for your reply.

I found the problem: The impact of capital utilization on the depreciation rate in the investment definition was missing. It seems to work now.
kraube
 
Posts: 2
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Re: Rank condition not verified

Postby ptr » Wed Oct 16, 2013 9:04 am

Hi Kraube,

Am also experiencing the same error. I've gone through the mode again and again with no success.

What could be the problem with my attached code?

Thanks in advance.

Ptr
Attachments
CC4.mod
(5.45 KiB) Downloaded 156 times
ptr
 
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