Hi all, I have a problem with this model where I get the following error

There are 15 eigenvalue(s) larger than 1 in modulus

for 15 forward-looking variable(s)

The rank condition is verified.

You did not declare endogenous variables after the estimation/calib_smoother command.

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):

Error using print_info

Error using print_info

Blanchard & Kahn conditions are not satisfied: indeterminacy.

Error in initial_estimation_checks (line 305)

print_info(info, DynareOptions.noprint, DynareOptions)

Error in dynare_estimation_1 (line 159)

oo_ = initial_estimation_checks(objective_function,xparam1,dataset_,dataset_info,M_,estim_params_,options_,bayestopt_,bounds,oo_);

Error in dynare_estimation (line 118)

dynare_estimation_1(var_list,dname);

Error in Cai_4HW5.driver (line 840)

oo_recursive_=dynare_estimation(var_list_);

Error in dynare (line 281)

evalin(‘base’,[fname ‘.driver’]);

Cai_4HW5.mod (20.1 KB)

I really don’t understand what the problem is, since rank condition IS VERIFIED.

Find attached the file

Thank you

Guido