Change in Blanchard-Kahn in 4.2.0?

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Change in Blanchard-Kahn in 4.2.0?

Postby reluginbuhl » Thu Mar 17, 2011 11:48 am

I have a mod file that successfully performs an estimation of my DSGE model in Dynare 4.1.3. The same mod file fails in 4.2.0. Here is the message I get:

Error in computing likelihood for initial parameter values
??? Error using ==> print_info at 39
Blanchard Kahn conditions are not satisfied: no stable equilibrium

Error in ==> initial_estimation_checks at 101
print_info(info, options_.noprint)

Error in ==> dynare_estimation_1 at 367
initial_estimation_checks(xparam1,gend,data,data_index,number_of_observations,no_more_missing_observations);

Error in ==> dynare_estimation at 62
dynare_estimation_1(var_list,varargin{:});

Error in ==> Model_14F_A at 479
dynare_estimation(var_list_);

Error in ==> dynare at 132
evalin('base',fname) ;

Has something changed in 4.2.0? Can anyone give me some ideas about how I might try to fix this?

Thank you.
reluginbuhl
 
Posts: 53
Joined: Wed Mar 04, 2009 2:41 pm

Re: Change in Blanchard-Kahn in 4.2.0?

Postby reluginbuhl » Fri Mar 18, 2011 2:12 pm

The answer to this problem can be found at the post: dynare error 4.2.0?

I am using a model with a stochastic trend in one of the observables. Therefore I need to use the argument diffuse_filter in the estimation command.

It would be helpful if this was better documented in the manual. I only see that it is listed as an argument under the command estimate, without any explanation.
reluginbuhl
 
Posts: 53
Joined: Wed Mar 04, 2009 2:41 pm


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