Dynare forums

Dear all,
I have written the codes, but dynare gives the following error.Could you help me how I should modify the model, or what should I do?I also attach the mod file.If you look, I would be grateful.
Thank you very much in advance,
Sincerely,


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

The rank conditions ISN'T verified!

??? Error using ==> print_info at 40
Blanchard Kahn conditions are not satisfied: no stable equilibrium

Error in ==> stoch_simul at 81
print_info(info, options_.noprint);

Error in ==> mn2 at 177
info = stoch_simul(var_list_);

Error in ==> dynare at 120
evalin('base',fname) ;

mod file:


var c R p k y re L S I ez eg ;
varexo ug uz ;
parameters alpha beta sigma delta lambda rho_g rho_z tao_inf tao_y tao_L si ci sis tax sigma_ug sigma_uz ;


alpha=0.3;
beta=0.99;
delta=0.02;
lambda=0.3;
sigma=2;

rho_g =0.7;
rho_z =0.7;

tao_inf=1.5;
tao_y=0.25;
tao_L=2;

si=0.3;
ci=0.6;
sis=0.1;

tax=0.08;

sigma_ug=0.38;
sigma_uz=1;



model(linear);

c=(c(+1))-(1/(sigma))*(R-(p(+1)));
R=(1-beta*(1-delta))*((sigma)*(c(+1))+(1/1-alpha)*(y(+1)-(k)+ p(+1)));
p=beta*(p(+1))+lambda*((sigma)*c-(alpha/1-alpha)*(k(-1)-y))+ez;
k(-1)=si*I(-1)+(1-delta)*k(-2);
I(-1)=L;
y= ci*c+si*I+tax*sis*S;
S=I/(1-tax);
R=re+tao_inf *p+tao_y*y+tao_L*(L(+1)-L);
re=R-p(+1);
ez=rho_z*ez(-1)+uz;
eg=rho_g*eg(-1)+ug;
END;



steady ;
check;

shocks;
var uz=(sigma_uz)^2;
end;


stoch_simul(order=1,irf=20);

Hi,

replace the capital accumulation equation with this one

k=si*I+(1-delta)*k(-1);

it should work

it works! thank you very much!
Sincerely,