Hello,
I am working on a 2 country RBC model and, in spite of my confidence about the equations I include in my dynare code, the Blanchard and Kahn conditions seems not to be safistied (9 eigenvalues larger than 1 in modulus for 8 forward-looking variables), I cannot find the error.. I really apreciate any help. Thanks !!!
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Blanchard and Kahn conditions not satisfied
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Blanchard and Kahn conditions not satisfied
by abonillab » Fri Apr 03, 2015 1:56 pm
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