Identification Stopped

1

Hi everyone,

I am estimating a linear model using Bayesian methods, and I am running into a problem. The model works fine, but I get the following identification error (although the Dynare completes the estimation and gives me the results)

======== Identification Analysis ========

Testing prior mean

The model does not solve for prior_mean (info = 3: Blanchard & Kahn conditions are not satisfied: no stable equilibrium.)

Try sampling up to 50 parameter sets from the prior.

Identification stopped:
The model did not solve for any of 50 attempts of random samples from the prior

dynare_estimation_init.m:: diffuse filter is incompatible with a qz_criterium<=1. Resetting it to 1+1e-6.
Initial value of the log posterior (or likelihood): -379754.8755

Since there is unit root in the model, I tried using the diffuse_filter option, but it still does not work.

Could anyone please help me solve this problem?
Files.zip (14.4 KB)

Thank you in advance!
S

2

In Dynare 5.2 I cannot replicate any problems when setting

identification(advanced=1,diffuse_filter);