# Blanchard Kahn conditions are not satisfied: no stable equil

**URL:** <https://forum.dynare.org/t/blanchard-kahn-conditions-are-not-satisfied-no-stable-equil/3523>\
**Category:** Dynare help (legacy posts)\
**Created:** [24 November 2013 02:41 UTC](https://forum.dynare.org/t/blanchard-kahn-conditions-are-not-satisfied-no-stable-equil/3523 "2013-11-24T02:41:19Z")\
**Posts on this page:** 5\
**Page:** 1

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**Author:** ![sujee2sujee](https://forum.dynare.org/letter_avatar_proxy/v4/letter/s/b9bd4f/32.png) [@sujee2sujee](https://forum.dynare.org/u/sujee2sujee)\
**Post date:** [24 November 2013 02:41 UTC](https://forum.dynare.org/t/blanchard-kahn-conditions-are-not-satisfied-no-stable-equil/3523/1 "2013-11-24T02:41:19Z")

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I am trying to estimate a small open economy model based on Gali and Monacelli (2005). I could solve the model. But, when I try to estimate the model I get the following error message.  
Error using ==\> print\_info at 40  
Blanchard Kahn conditions are not satisfied: no stable equilibrium

Error in ==\> initial\_estimation\_checks at 69  
print\_info(info, DynareOptions.noprint)

Error in ==\> dynare\_estimation\_1 at 169  
oo\_ = initial\_estimation\_checks(objective\_function,xparam1,dataset\_,M\_,estim\_params\_,options\_,bayestopt\_,oo\_);

Error in ==\> dynare\_estimation at 70  
dynare\_estimation\_1(var\_list,dname);

Error in ==\> mycodebay at 273  
dynare\_estimation(var\_list\_);

Error in ==\> dynare at 120  
evalin(‘base’,fname) ;

I am new to DSGE modeling and Dynare. Can anyone help me to correct this error? Files are attached[mycodebay.mod](https://forum.dynare.org/uploads/default/original/2X/0/02dbad5032a4bbf24f28f7e91aad945cb6ad75ac.mod) (4.17 KB)[sldata.xls](https://forum.dynare.org/uploads/default/original/2X/2/228ce9b6db0a60f293518157988070f5a6ac975c.xls) (23.5 KB)

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**Author:** ![costa](https://forum.dynare.org/letter_avatar_proxy/v4/letter/c/85f322/32.png) [@costa](https://forum.dynare.org/u/costa)\
**Post date:** [24 November 2013 13:21 UTC](https://forum.dynare.org/t/blanchard-kahn-conditions-are-not-satisfied-no-stable-equil/3523/2 "2013-11-24T13:21:00Z")

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Usinge model diagnostics, there are colinear variables in the model:

> > model\_diagnostics(M\_,options\_,oo\_)  
> > model\_diagnostic: the Jacobian of the static model is singular  
> > there is 1 colinear relationships between the variables and the equations  
> > Colinear variables:  
> > e  
> > sle\_obs  
> > Colinear equations  
> > 1 3 5 6 7 8 12 14

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**Author:** ![sujee2sujee](https://forum.dynare.org/letter_avatar_proxy/v4/letter/s/b9bd4f/32.png) [@sujee2sujee](https://forum.dynare.org/u/sujee2sujee)\
**Post date:** [25 November 2013 17:35 UTC](https://forum.dynare.org/t/blanchard-kahn-conditions-are-not-satisfied-no-stable-equil/3523/3 "2013-11-25T17:35:13Z")

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Thank you Costa for your suggestion. I managed to coorect it and the code is running now. I have been struggling with this problem for 2 weeks. Thank you for saving my time.

SUjee2sujee

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**Author:** ![mb\_roma](https://forum.dynare.org/letter_avatar_proxy/v4/letter/m/fbc32d/32.png) [@mb\_roma](https://forum.dynare.org/u/mb_roma)\
**Post date:** [4 December 2013 22:49 UTC](https://forum.dynare.org/t/blanchard-kahn-conditions-are-not-satisfied-no-stable-equil/3523/4 "2013-12-04T22:49:04Z")

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Hi,  
I have the same problem with the same model. Using the comand model\_diagnostic i have found one collinear relationship with e and many equation. I think the problem involve the relations of terms of trade, nominal exchange rate and real exchang rate. “sujee2sujee” how did you solve the problem of collinear relation?

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**Author:** ![Alkebulan](https://forum.dynare.org/letter_avatar_proxy/v4/letter/a/45deac/32.png) [@Alkebulan](https://forum.dynare.org/u/Alkebulan)\
**Post date:** [4 March 2015 17:11 UTC](https://forum.dynare.org/t/blanchard-kahn-conditions-are-not-satisfied-no-stable-equil/3523/5 "2015-03-04T17:11:15Z")

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Hey sujee2sujee,  
Could you say a few words about how you fixed the problem? I am struggling with the same issue. Thanks.