Error message. Blanchard Kahn

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Error message. Blanchard Kahn

Postby bk » Thu Mar 06, 2008 8:33 pm

I get the following error message:
There are 2 eigenvalue(s) larger than 1 in modulus
for 2 forward-looking variable(s)

The rank condition is verified.

Initial value of the log posterior (or likelihood): -100000001.0205
Error in computing likelihood for initial parameter values
??? Error using ==> print_info at 24
Blanchard Kahn conditions are not satisfied: indeterminacy

Error in ==> initial_estimation_checks at 27
print_info(info)

Error in ==> dynare_estimation at 249
initial_estimation_checks(xparam1,gend,data);

Error in ==> bayesian at 170
dynare_estimation(var_list_);

Error in ==> dynare at 26
evalin('base',fname) ;

Does anyone know what is wrong? I've attatched the mod-file.
Attachments
bayesian.mod
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bk
 
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