Dear Michel,
I am working on a model where both Dynare 4.2.5 and the most recent snapshot
tell me the BK conditions are verified. However, 4.2.5 says the rank
condition is satisfied, while the most recent snapshot says it is not
satisfied.
The reason it that the matrix
w(1:nyf,nd-nyf+1:end)
in dyn_first_order_solver.m contains two rows of 0 that were not there in
dr1.m in 4.2.5. Is there any explanation for this difference and which
version should I trust? The IRFs are the same in both versions and
model_diagnostics does not report any problems.
Best,
Johannes