Blanchard Kahn conditions are not satisfied: indeterminacy

[yshguo]

hello, everybody

I encounter this problem: "Blanchard Kahn conditions are not satisfied: indeterminacy " when I simulate a DSGE model. That would be fine if anybody can solve it, thank you very very much! I come from China, my english is not quite well, so I can't write a lot. my email address is yshguo@gdufs.edu.cn.

Best wishes
yshguo

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) ;

[yshguo]

dear all

.mod file has problem, now I send modified .mod file again. thanks a lot.

[costa]

You got colinearity problems with the model.
>> model_diagnostics(M_,options_,oo_)
model_diagnostic: the Jacobian of the static model is singular
there is 1 colinear relationships between the variables and the equations
Colinear variables:
c
ch
cf
p
m
l
w
lamda
ii
tao
k
r
rk
d
n
Colinear equations
16 17 23

[yshguo]

hello, costa

thanks a lot for your response, your reply is very useful for me, I have modified some equations, now the problem has been resolved.

yshguo

[selima]

If model diagnostics show you such messages , how do you solve the problem by changing some equation?..