Rank condition not verified
Posted: 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!
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!