I am doing a stoch_simul at the mode of the posterior distribution using the commands
estimation(graph_format= (pdf, fig), plot_priors=0,mode_file=mcmcmode,datafile= data1993q1to2018q2, mh_replic=0, mode_compute=0); %check; stoch_simul(irf=41) aw ac aik aih g ax am armon arh as aph lnmig pxstar pmstar ;
Dynare 4.5.6 loads the mode file (which was also used for successful MCMC and bayesian IRFS) and then produces the figures for smoothed shocks, but then the Blanchard-Kahn indeterminacy happens.
This is a bit bizarre because I thought Dynare only picks those parameter sets that satisfy the determinacy conditions.
MCMC works fine! So the model obviously offers a unique solution for many parameter sets!
Also, I noticed that the posterior mode estimation works well at the parameter values declared in the estimated_params_init block…However, if we do a stoch_simul using the same values for calibrating the parameters, again, I see the indeterminacy problem.
I would be interested to hear your views on this…Never encountered this problem before…