Hi, I run my model. but appear this error; Blanchard Kahn conditions are not satisfied
why?
even I change my parameters, but this error appear again.
example.mod (1.13 KB)
I do not see anything blatantly incorrect, but what did you change from the example as it is provided by Dynare? If you changed the magnitude of the shocks, that can lead to BK violations.
No. Shocks sizes are irrelavant. Usually, it’s about the timing conventions.
Hmm. Although this hasn’t been a problem for me, the bottom FAQ was the one that I was alluding to: dynare.org/documentation-and … imulations
But that case is about the Blanchard-Kahn conditions being satisfied and not getting stable simulations. This post is about the BK-conditions not being satisfied.