I’m trying to run identification. I get the following error:
Parameter error:
The model does not solve for prior_mean with error code info = 3
Identification stopped
Can anyone please tell me what this means?
Please post or send me the mod-file.
Error 3 is: 'Blanchard Kahn conditions are not satisfied: no stable equilibrium’
Error 4 is: ‘Blanchard Kahn conditions are not satisfied: indeterminacy’
As these messages refer to the prior mean, your prior mean does not or not uniquely solve the model.
Thanks a lot. Since the routine crashes because of these errors, is there any way I can make it run without changing the priors?