# of eigenvalues = # of forward looking variables, however

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# of eigenvalues = # of forward looking variables, however

Postby justinwang » Sat Feb 18, 2012 3:38 pm

I read the dynare manual, it says that if the number of eigenvalues equals to the number of forward-looking variables, the rank conditions should be satisfied. How come in my case, it does not?

Attached is my dynare code, if you run it, the result is:

There are 8 eigenvalue(s) larger than 1 in modulus
for 8 forward-looking variable(s)

The rank conditions ISN'T verified!

what's wrong with the code?

best wishes!

justin
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paper2b.mod
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justinwang
 
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Re: # of eigenvalues = # of forward looking variables, howev

Postby jpfeifer » Sat Feb 18, 2012 8:53 pm

The following endogenous variables aren't present at the current period in the model:
rkt
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
jpfeifer
 
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Re: # of eigenvalues = # of forward looking variables, howev

Postby justinwang » Sat Feb 18, 2012 11:21 pm

jpfeifer wrote:The following endogenous variables aren't present at the current period in the model:
rkt

thanks a lot. That solved the problem.
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