Hello, everybody, when I estimated my model, dynare warn me “The rank condition ISN’T verified!” and can’t finish the whole estimation. I attached the errors information, my mod file and data file here. Thank you for your help.

The rank condition ISN’T verified!

Loading 55 observations from obs_data.m

PARAMETER INITIALIZATION: Some standard deviations of shocks of the calibrated model are 0 and

PARAMETER INITIALIZATION: violate the inverse gamma prior. They will instead be initialized with the prior mean.

Error in computing likelihood for initial parameter values

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

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 48)

Blanchard Kahn conditions are not satisfied: indeterminacy due to rank failure

Error in print_info (line 48)

error(‘Blanchard Kahn conditions are not satisfied:’ …

Error in initial_estimation_checks (line 69)

print_info(info, DynareOptions.noprint, DynareOptions)

Error in dynare_estimation_1 (line 179)

oo_ =

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

Error in dynare_estimation (line 89)

dynare_estimation_1(var_list,dname);

Error in dsge_esti (line 396)

dynare_estimation(var_list_);

Error in dynare (line 180)

evalin(‘base’,fname) ;

obs_data.m (4.59 KB)

dsge_esti.mod (2.89 KB)