Dynare forums

Posted: **Mon Nov 18, 2013 10:05 am**

Dear all,

I am trying to run a DSGE model based on dynare but I am receveing the following error:

There are 6 eigenvalue(s) larger than 1 in modulus
for 7 forward-looking variable(s)

The rank conditions ISN'T verified!

??? Error using ==> print_info at 43
Blanchard Kahn conditions are not
satisfied: indeterminacy

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

Error in ==> MCF at 217
info = stoch_simul(var_list_);

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

I tried to change my parameters values following the literature, I checked my equation but I still have this error message.

Can someone give me a clue or a way to fix the Blanchard Kahn conditions?

Thanks a lot.

Posted: **Tue Nov 19, 2013 9:14 am**

You need to post the mod-file, not the m-file

Posted: **Wed Nov 20, 2013 11:44 am**

Sorry about that. This is the right file.

Posted: **Wed Nov 20, 2013 3:52 pm**

It looks like a timing problem.

Posted: **Thu Nov 21, 2013 8:42 am**

Thanks you for responding so quickly.

However, I am not sure to get what you have in mind.
Do you think I made a mistake according the timing convention?

Posted: **Thu Nov 21, 2013 4:16 pm**

Yes, exactly. Like not correctly identifying that a variable is predetermined.

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Blanchard Kahn conditions not satisfied

Blanchard Kahn conditions not satisfied

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Re: Blanchard Kahn conditions not satisfied

Re: Blanchard Kahn conditions not satisfied

Re: Blanchard Kahn conditions not satisfied

Re: Blanchard Kahn conditions not satisfied