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?
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Monetary Union - rank problem
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Monetary Union - rank problem
by jpv1988 » Mon Sep 07, 2015 3:03 pm
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Bergin_No_MS_simple.mod- (1.72 KiB) Downloaded 95 times
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Re: Monetary Union - rank problem
by jpfeifer » 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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