Hi, i have dsge model in dynare that is running.but model diagnostics say it contains unit root.and i dont know how to solve it?i want this model for forecasting and i dont know that this problem is critical or not.i attach my dynare code.please help me.
main.txt (18.7 KB)
help me professor pfifer!
Use
stoch_simul(irf=0, graph_format=(pdf), nograph) ;
to see that most variables in your model have NaN moments. It is highly unusual for real variables in such a model to feature a unit root. I can only give you the generic advice: check all your equations for mistakes.