No Stable Equilibrium but No obvious problems

Stochastic simulations
1

My Dynare code gives me the following error: Blanchard & Kahn conditions are not satisfied: no stable equilibrium.

But when I check MODEL_DIAGNOSTICS: No obvious problems with this mod-file were detected.

I don’t know whether it is because the timing or some of the variables are explosive (causing by unreasonable parameters? ). I check both, but I don’t know what the problem is.

Here I attach the file, hopefully someone can help. Thanks Very Much !!!
tr_workingsalary_steadystate_helper.m (4.5 KB)
tr_workingsalary.mod (6.5 KB)

2

It’s almost always a timing issue. You may have to simplify your model.

3

Yes, it really because of timing. Thank you very much, Professor Jpfeifer!