When I run a BVAR-DSGE model in Dynare, I get the message shown in the picture.
Where’s the problem please ?
Hi,
your priors are a problem. for given priors you model is not converging (imagine it like a 3D curved plane that is flat so that estimator cannot find a spot in which it could maximize / minimize goal and thus identify a solution).
What you can do is set flatter priors (give more weight to tails) or try different priors if you have some belief about what they should be.
Hope that helps.
It’s working after modification in stderr of shocks. But another message is shown ! any suggestions ??
This is a naming conflict. You have a function var.m in the Dynare folder that should not be there.
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