I was trying to do a conditional forecast after doing an estimation of the model by setting a conditional forecast path for endogenous variable.
I used this part of the code to do conditional forecast:
values 0.99 0.98 0.97 0.96 0.95 0.94 0.95 0.96;
conditional_forecast(parameter_set=calibration, periods = 8, controlled_varexo=(epsilon_shock_p_o));
However, after running my code I got the following error message: “conditional_forecasts: controlling of variables was not successful.
This can be due to numerical imprecision (e.g. explosive simulations)
or because the instrument(s) do not allow controlling the variable(s).”
Any ideas on why I got this message and whether the results of the forecasting are still reliable?
Thank you for your help in advance!