Rank Condition Failure

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Rank Condition Failure

Postby lin123 » Thu Apr 07, 2016 11:46 pm

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.
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Re: Rank Condition Failure

Postby jpfeifer » Fri Apr 08, 2016 6:53 am

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.
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
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Re: Rank Condition Failure

Postby lin123 » Fri Apr 08, 2016 8:28 am

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.
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Re: Rank Condition Failure

Postby jpfeifer » Fri Apr 08, 2016 9:53 am

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)
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
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Re: Rank Condition Failure

Postby lin123 » Tue Apr 19, 2016 9:55 am

Thanks a lot for your suggestion, Professor Pfeifer.
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Re: Rank Condition Failure

Postby nastforest » Fri Oct 14, 2016 11:33 am

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.
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Re: Rank Condition Failure

Postby jpfeifer » Fri Oct 14, 2016 12:16 pm

Try different parameter values and see whether that changes anything.
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
jpfeifer
 
Posts: 6940
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Location: Cologne, Germany


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