Hi All,

I am working on a Bayesian DSGE model. The model goes through the initial stage of solving however when I reach the estimation stage I get the following error. I am new to Dynare and thus not very sure if the steadystate.m file I am using is correct. Please have a look at the files.

Any help is deeply appreciated.

There are 7 eigenvalue(s) larger than 1 in modulus

for 7 forward-looking variable(s)

The rank condition is verified.

Loading 112 observations from datafirst.m

??? Error using ==> initial_estimation_checks at 78

The seadystate values returned by first1_steadystate.m don’t solve the static model!

Error in ==> dynare_estimation_1 at 320

initial_estimation_checks(xparam1,gend,data);

Error in ==> dynare_estimation at 62

dynare_estimation_1(var_list,varargin{:});

Error in ==> first1 at 382

dynare_estimation(var_list_);

Error in ==> dynare at 102

evalin(‘base’,fname) ;

datafirst.m (7.34 KB)

first1_steadystate.m (2.25 KB)

first1.mod (5.14 KB)