Dear all,
I have a question when dealing with Bayesian estimation.
In the .mod file, I have stoch_simul() part before the estimation() command, and I set
estimated_params_init(use_calibration);
end;
in front of estimation() command.
It reports BK condition fails error for estimation() command but the initial stoch_simul() part pass it.
The error message is as follows,
ESTIMATION_CHECKS: There was an error in computing the likelihood for initial parameter values.
ESTIMATION_CHECKS: If this is not a problem with the setting of options (check the error message below),
ESTIMATION_CHECKS: you should try using the calibrated version of the model as starting values. To do
ESTIMATION_CHECKS: this, add an empty estimated_params_init-block with use_calibration option immediately before the estimation
ESTIMATION_CHECKS: command (and after the estimated_params-block so that it does not get overwritten):
Error using print_info
Error using print_info
Blanchard & Kahn conditions are not satisfied: no stable equilibrium.
Error in initial_estimation_checks (line 248)
print_info(info, options_.noprint, options_)
Error in dynare_estimation_1 (line 165)
oo_ = initial_estimation_checks(objective_function,xparam1,dataset_,dataset_info,M_,estim_params_,options_,bayestopt_,bounds,oo_);
Error in dynare_estimation (line 105)
dynare_estimation_1(var_list,dname);
Error in ModelBayesianEstimationRoots.driver (line 663)
oo_recursive_=dynare_estimation(var_list_);
Error in dynare (line 308)
evalin('base',[fname '.driver']);
Error in rundynare (line 14)
dynare ModelBayesianEstimationRoots.mod
I am really confused about this situation. I was wondering why the BK condition fails for the initial estimation checks even if the calibration of parameters in the simulation works.
Thank you very much!