Rank Condition Failure

[lin123]

Hello,
As I posted days before, I am developing a DSGE model based on Gerali(2010). It has a real sector similar to the one presented by Brzoza-Brzezina and Krzysztof (2011). The model's novelty is that there are households who take debt in foreign currency. I tried to run the model with calibrated parameters but I didn't succeed. Dynare says that there is a rank condition failure. But, nevertheless I use the Model Diagnostic command, Dynare does not tell me what kind of error I have.
Can you please help me or give some advice of how to fix this problem or what could be wrong?
I will appreciate all your comments.
Please find attached the mod.file
Lin.

[jpfeifer]

As always in theses cases, simplify your model to a point where it works and then start adding features back again to see where the problem comes from. Debugging models of this size is close to impossible.

[lin123]

Thank you Professor Feifer.
I tried eliminating the new type of households and still it does not work.
Could it be caused by a wrong calibration?
Thanks again for your response.
Elmer.

[jpfeifer]

Ideally, you start with a working version of Gerali et al and then continue from there. It can be a matter of parameterization, but that is unlikely (but easy to test)

[lin123]

Thanks a lot for your suggestion, Professor Pfeifer.

[nastforest]

Dear Johannes,
Could you please suggest how can I test for whether parameterization is the problem in case of rank failure?
Thank you in advance.

[jpfeifer]

Try different parameter values and see whether that changes anything.