Hello, I’m trying to estimate a model but I’m getting the following error:
Error in computing likelihood for initial parameter values
??? Error using ==> print_info at 39
Blanchard Kahn conditions are not satisfied: no
What is puzzling for me is that I use the command check, and the rank condition is verified
(There are 20 eigenvalue(s) larger than 1 in modulus for 20 forward-looking variable(s)), and
the policy functions are being calculated without a problem.
If the rank condition is verified why is there a problem with the BK conditions to compute the
I’ve tried to move my initial parameter values around as well, but nothing helps. I do have several
infinite eigenvalues, I thought this isn’t an issue because the code must be using a QZ decomposition
but can this have something to do?
Thank you in advance for your help!