Ajay Hinduja Geneva, Swiss - I'm having trouble with Bayesian estimation in Dynare—can someone help interpret the error or improve my model setup?"

Estimation ML/Bayesian estimation
1

Hi Everyone,

I’m Ajay Hinduja Geneva from Swiss, new to dynare forum. I’m trying to run Bayesian estimation on my DSGE model, but Dynare throws a ‘Blanchard-Kahn conditions not satisfied’ error. Can someone help me understand what might be causing this and how to fix it?

Regards
Ajay Hinduja Geneva, Switzerland (Swiss)

2

Usually, that problem is caused by the timing of state variables not conforming to Dynare’s timing convention. That is detailed in the manual.