Hello everyone,
I know there are many posts about this topic but I would like to
get some help regarding issues with the Blanchard Kahn conditions.
This is what I get after running my code:
------------------------------------------------------------------------------------------------
There are 7 eigenvalue(s) larger than 1 in modulus
for 7 forward-looking variable(s)
The rank conditions ISN'T verified!
??? Error using ==> print_info at 46
Blanchard Kahn conditions are not satisfied: indeterminacy due to rank failure
Error in ==> stoch_simul at 81
print_info(info, options_.noprint);
Error in ==> modelo at 483
info = stoch_simul(var_list_);
Error in ==> dynare at 120
evalin('base',fname) ;
------------------------------------------------------------------------------------------------
Please, if somebody could have a look I will really appreaciate it. I tried to change
timing, variables and still, more or less the same message.
Here I post the .mod file and its steady states file as well (change the extension for .mat)
Thank you very much in advance
Fernando