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
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Blanchard-Kahn conditions, an error message
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Blanchard-Kahn conditions, an error message
by Oxana » Thu Oct 29, 2009 9:25 pm
- Attachments
-
cespedes_al.pdf- paper
- (413.5 KiB) Downloaded 131 times
-
- estim3.mod
- for flexible exchange rate
- (1.05 KiB) Downloaded 119 times
-
- estim6.mod
- for fixed exchange rate
- (1.04 KiB) Downloaded 115 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
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- Joined: Fri Dec 07, 2007 2:29 pm
- Location: Paris, France
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