Im trying to estimate a simple semi structural model for the Colombian economy in the spirit of Laxton et al. (2008) A Small Quarterly Multi-Country Projection Model. (imf.org/external/pubs/ft/wp/2008/wp08279.pdf)
I’m trying to adapt the model to monthly data instead of quarterly data. As an initial naive approach I used the same parameter calibrated values of quarterly models and used the same lags of the quarterly model. Im trying to simplify a bit, so no other countries are included. I’m just trying to get the model for Colombia right.
I’m stuck due to this error code:
Error using print_info (line 45)
Blanchard Kahn conditions are not satisfied: indeterminacy
The model is exactly like the one in the paper (the code is available online).
I’m afraid the problem is that making the model’s frequency monthly is more complicated than I anticipated.
Any thoughts on this would be appreciated.