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.
I tried with the priors, but I will try again.
Many thanks @tamara_b.
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.
1 Like
Done !
All thanks and greetings @jpfeifer