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