Dynare forums

Posted: **Mon Sep 07, 2015 3:03 pm**

Hi, I am working on a simple version of Bergin(2000), but my model doesn't satisfy the rank condition. I don't understand why.

"There are 3 eigenvalue(s) larger than 1 in modulus
for 3 forward-looking variable(s)

The rank condition ISN'T verified!"

The mod file is attached.

Could anyone help me?

Posted: **Sun Sep 13, 2015 4:15 pm**

I am not familiar with that model, but are you sure that you have all relevant equations entered correctly? And are you sure that model allows for a unique determinate equilibrium?

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