Hi Cfp,

I have a question regarding your dynareOBC toolkit. It said ‘Impossible problem encountered. Try increasing TimeToEscapeBounds,or reducing the magnitude of shocks.’ But the variance is estimated from the data, so I cannot reduce that.

So I go to the other route. However I notice it also displays the following: The M matrix with T (TimeToEscapeBounds) equal to 9 is a P-matrix.

I am curious about the origins of the problem here. I wonder if you could possibly help me point out? Does it mean my model doesn’t return to deterministic steady state?

Meanwhile, In this case, do you have any suggestions how I should proceed?

Many thanks.