Hi,
I try to replicate a model from Cespedes et al(2000). The model with flexible exchange rate works rather well but the model with fixed exchange rate does not work at all. If I run the code (estim6.mod, here attached) I have an error message:
There are 4 eigenvalue(s) larger than 1 in modulus
for 4 forward-looking variable(s)
The rank conditions ISN'T verified!
How is it possible that the rank condition is not verified if the number of non-predetermined variables equals the number of eigenvalues greater than one?
What was my mistake?
Please help me, it is really important for me.
Thank you in advance,
Oxana
Dynare forums
Forums for asking questions, posting comments and uploading examples related to Dynare
Blanchard-Kahn conditions, an error message
Forum rules
This forum is closed. You can read the posts but cannot write. We have migrated the forum to a new location (https://forum.dynare.org) where you will have to reset your password.
This forum is closed. You can read the posts but cannot write. We have migrated the forum to a new location (https://forum.dynare.org) where you will have to reset your password.
2 posts
• Page 1 of 1
Blanchard-Kahn conditions, an error message
by Oxana » Thu Oct 29, 2009 9:25 pm
- Attachments
-
cespedes_al.pdf- paper
- (413.5 KiB) Downloaded 130 times
-
- estim3.mod
- for flexible exchange rate
- (1.05 KiB) Downloaded 118 times
-
- estim6.mod
- for fixed exchange rate
- (1.04 KiB) Downloaded 114 times
- Oxana
- Posts: 1
- Joined: Thu Oct 29, 2009 8:40 pm
Re: Blanchard-Kahn conditions, an error message
by SébastienVillemot » Tue Nov 03, 2009 10:15 am
Sébastien Villemot
Economist at OFCE – Sciences Po
Economist at OFCE – Sciences Po
- SébastienVillemot
- Posts: 706
- Joined: Fri Dec 07, 2007 2:29 pm
- Location: Paris, France
2 posts
• Page 1 of 1
Who is online
Users browsing this forum: Google [Bot] and 10 guests