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)