Why Blanchard & Kahn conditions are not satisfied: no stable equilibrium

General DSGE Modeling
1

Hello, everyone!
When I run the code, I get an error: Blanchard & Kahn conditions are not satisfied: no stable equilibrium.
I’ve found that when I run stoch_simul, I’m working fine. But when performing calib_smoother, shock_decomposition, and estimation, the error “Blanchard & Kahn conditions are not satisfied: no stable equilibrium.” will appear. Why? How can I modify the code to make it work?
The following is my code, please help me, thank you very much!
data.mat (9.1 KB)
estimate.mod (22.3 KB)
estimate_steadystate.m (4.6 KB)

2

Your model has a unit root. You need to use the diffuse_filter option.