Blanchard-Kahn issue in estimation

I’m trying to estimate the model from Lubik 2007. I’ve seen the model mentioned multiple times on this forum, but I haven’t been able to solve my specific estimation issue:

Error in computing likelihood for initial parameter values

ESTIMATION_CHECKS: There was an error in computing the likelihood for initial parameter values.
ESTIMATION_CHECKS: If this is not a problem with the setting of options (check the error message below),
ESTIMATION_CHECKS: you should try using the calibrated version of the model as starting values. To do
ESTIMATION_CHECKS: this, add an empty estimated_params_init-block with use_calibration option immediately before the estimation
ESTIMATION_CHECKS: command (and after the estimated_params-block so that it does not get overwritten):

Blanchard & Kahn conditions are not satisfied: no stable equilibrium.

Is there something I’m doing incorrectly? I wondered if my specific parameter values were creating the issue, but that doesn’t seem to be the case (and the values are in fact from the original paper). My input data is from a previous simulation run of the same model with the same parameters.

Any help greatly appreciated!

LS.mod (4.1 KB)
data_lubik_sim_spreadsheet.xlsx (375.6 KB)

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