Error : no stable equilibrium

Dynare help (legacy posts)
1

Hello,

When i run my dynare codes, matlab give me this error message:

??? Error using ==> print_info at 21
Blanchard Kahn conditions are not satisfied: no stable equilibrium

Error in ==> stoch_simul at 49
print_info(info);

Error in ==> petrole1 at 148
info=stoch_simul(var_list_);

Error in ==> dynare at 26
evalin(‘base’,fname) ;

Could someone please help me understand what does it mean and what i have to do to solve it.

thanks

2

hi
this is just that the model, given the present parameter values is unstable as a dynamic system given the B-K conditions.
one can play around with the values a bit.
or one can strip down the model to the simplest possible version and then add the other equations gradually. then one can see the source of instability gradually.

cheers
reuben

3

Thank you so much for your help

4

Thank you so much for your help