Hi all,
I’m trying to estimate a DSGE model using Bayesian method but I’ve a problem with my steady state values. When I run Dynare, I obtain the following message:
There are 13 eigenvalue(s) larger than 1 in modulus
for 13 forward-looking variable(s)
The rank condition is verified.
You did not declare endogenous variables after the estimation command.
Loading 83 observations from data.m
??? Error using ==> initial_estimation_checks
The seadystate values returned by algeria_steadystate.m don’t solve the static model!
Error in ==> dynare_estimation_1 at 367
initial_estimation_checks(xparam1,gend,data,data_index,number_of_observations,no_more_missing_observations);
Error in ==> dynare_estimation at 62
dynare_estimation_1(var_list,varargin{:});
Error in ==> algeria at 381
dynare_estimation(var_list_);
Error in ==> dynare at 132
evalin(‘base’,fname) ;
What could be wrong ?