Hello, I am replicating the Bayesian estimation part of Justiniano and Preston (2010, Journal of Applied Econometrics). This is a small open economy DSGE model, and I am estimating the parameters for this model.
As I run the model, I get the following errors:
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):
and this as well:
Blanchard & Kahn conditions are not satisfied: no stable equilibrium.
I attach my dynare codes and the data. Hope someone can tell me what the problem is.