I am new to Bayesian estimation in DSGE, since I apply the Indirect Inference in the past and I always log-linearise the equations, but now the model can be run smoothly in stochastic simulation, but when it comes to the Bayesian, error says steady state can not be computed.
Could anyone help to figure where is the problem? the data only includes output, because it is still under the test. Many thanks
II_coef.mat (222 Bytes)