I get the following error message:
There are 2 eigenvalue(s) larger than 1 in modulus
for 2 forward-looking variable(s)
The rank condition is verified.
Initial value of the log posterior (or likelihood): -100000001.0205
Error in computing likelihood for initial parameter values
??? Error using ==> print_info at 24
Blanchard Kahn conditions are not satisfied: indeterminacy
Error in ==> initial_estimation_checks at 27
print_info(info)
Error in ==> dynare_estimation at 249
initial_estimation_checks(xparam1,gend,data);
Error in ==> bayesian at 170
dynare_estimation(var_list_);
Error in ==> dynare at 26
evalin(‘base’,fname) ;
Does anyone know what is wrong? I’ve attatched the mod-file.
bayesian.mod (1.19 KB)