Dear all,

I’m trying to run my Bayesian estimation mod file, but I get error warnings:

"

Error in computing likelihood for initial parameter values

ESTIMATION_CHECKS: There was an error in computing the likelihood for initial parameter values.

ESTIMATION_CHECKS: If this is not a problem with the setting of options (check the error message below),

ESTIMATION_CHECKS: you should try using the calibrated version of the model as starting values. To do

ESTIMATION_CHECKS: this, add an empty estimated_params_init-block with use_calibration option immediately before the estimation

ESTIMATION_CHECKS: command (and after the estimated_params-block so that it does not get overwritten):

Error Using print_info (line 42)

Blanchard Kahn conditions are not satisfied: no stable equilibrium

Error print_info (line 42)

error([‘Blanchard Kahn conditions are not satisfied: no stable’ …

Error initial_estimation_checks (line 175)

print_info(info, DynareOptions.noprint, DynareOptions)

Error dynare_estimation_1 (line 165)

oo_ = initial_estimation_checks(objective_function,xparam1,dataset_,dataset_info,M_,estim_params_,options_,bayestopt_,bounds,oo_);

Error dynare_estimation (line 105)

dynare_estimation_1(var_list,dname);

Error rer_new_bayes (line 738)

oo_recursive_=dynare_estimation(var_list_);

Error dynare (line 235)

evalin(‘base’,fname) ;

"

But I can run my simulation file without “Blanchard Kahn conditions are not satisfied: no stable equilibrium”.

I don’t know how to solve the problem. I wiil appreciate all your help! Thank you all!

Simulation file:rer_new.mod (21.0 KB)

Bayesian file:rer_new_bayes.mod (21.5 KB)

data file:bayes.xls (31 KB)