Hello everyone, I am new on DSGE and dynare. I’ve been working on my thesis recently, and this notice keeps showing up: ‘Blanchard & Kahn conditions are not satisfied: no stable equilibrium.’

I wonder why this happen? I’ve checked my work on linearization and model, at least there is no mistake with calculation(I suppose). Please tell me how can I fix errors, I would very much appreciate that. My codes are attached below.

abc.zip (3.5 KB)

Problem finally solved. Thanks a lot! I have one new question and I would appreciate your reply.

The model now shows this warning

Would you please tell me what’s the problem?

Did you provide a conditional steady state file? If not, you should do so.

i’ve already listed the steady state. there is a problem in the original paper that i cannot figure out.

Given a formula like this, in the steady state is there supposed to be:

beta * r / (lambda_z * pi)=1

However i’ve checked the author gave me and this is not satisfied. So is it the problem of the parameter or i misunderstand the meaning of steady state?

Without more context and the files, it is impossible to tell.