Blanchard Kahn conditions are not satisfied

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Blanchard Kahn conditions are not satisfied

Postby azam_ahmadyan » Wed Dec 25, 2013 9:31 am

dear stephanie
I have a problem at run of model. when I run it, this error message appears. please help me . how can I do to solve it? I send my mod file. Please help me
the questuions are as follow:

Configuring Dynare ...
[mex] Generalized QZ.
[mex] Sylvester equation solution.
[mex] Kronecker products.
[mex] Sparse kronecker products.
[mex] Local state space iteration (second order).
[mex] Bytecode evaluation.
[mex] k-order perturbation solver.
[mex] k-order solution simulation.
[mex] Quasi Monte-Carlo sequence (Sobol).
[mex] Markov Switching SBVAR.

Starting Dynare (version 4.3.3).
Starting preprocessing of the model file ...
Found 26 equation(s).
Evaluating expressions...done
Computing static model derivatives:
- order 1
Computing dynamic model derivatives:
- order 1
- order 2
Processing outputs ...done
Preprocessing completed.
Starting MATLAB/Octave computing.

??? 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 ==> dsge_siml at 324
info = stoch_simul(var_list_);

Error in ==> dynare at 120
evalin('base',fname) ;
Attachments
bank.mod
(2.35 KiB) Downloaded 124 times
bank.mod
(2.35 KiB) Downloaded 117 times
azam_ahmadyan
 
Posts: 1
Joined: Wed Dec 25, 2013 9:17 am

Re: Blanchard Kahn conditions are not satisfied

Postby jpfeifer » Fri Dec 27, 2013 8:54 am

You are violating Dynare's timing convention. If you use the beginning of period stock notation as in
Code: Select all
k(+1)=(1-delta)*k+delta*i;

you need to use
Code: Select all
predetermined_variables k;

The same applies to other predetermined variables. There should be at least one more. See the manual for more details.
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
jpfeifer
 
Posts: 6940
Joined: Sun Feb 21, 2010 4:02 pm
Location: Cologne, Germany


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