Hi

I’m writing the code of STRUCTURAL ESTIMATION OF THE OUTPUT GAP: A BAYESIAN DSGE APPROACH (Hirose, Naganuma 2010) but i get this error:

Error using print_info (line 42)

Blanchard Kahn conditions are not satisfied: no stable equilibrium

Error in print_info (line 42)

error([‘Blanchard Kahn conditions are not satisfied: no stable’ …

Error in initial_estimation_checks (line 175)

print_info(info, DynareOptions.noprint, DynareOptions)

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 OutputGapV02 (line 288)

oo_recursive_=dynare_estimation(var_list_);

Error in dynare (line 235)

evalin(‘base’,fname) ;

I know that the presence of a singularity problem typically indicates that there is one

redundant equation entered in the model block, while another non-redundant equation

is missing. but i want help to find the mistake in model. Here is the code:

Thanks

OutputGapV02.mod (3.9 KB)