Dynare forums

My model works using stoch_simul and generate a good simulation using a certain group parameter. Now I want to estimate using Bayesian, but I get this result:

There are 5 eigenvalue(s) larger than 1 in modulus
for 5 forward-looking variable(s)

The rank condition is verified.


You did not declare endogenous variables after the estimation command.
This version of Dynare cannot estimate non linearized models!
Set "order" equal to 1.

Warning: Could not start Excel server for import, 'basic' mode will be used. Refer to
HELP XLSREAD for more information.
> In xlsread at 176
In read_variables at 72
In dynare_estimation_1 at 269
In dynare_estimation at 62
In Korea_est at 382
In dynare at 132
Loading 41 observations from Datakorea1c.xls

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 ==> Korea_est at 382
dynare_estimation(var_list_);

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


Could you please help me.

Try setting the initial values of the parameters for the estimation to the values used in stoch_simul (see the manual on how to do this).
If you already did this and your model contains a unit root, try putting

Code: Select all

lik_init=2

in the estimation command.

I came across the same problem. Even I set the initial values of parameters to be estimated are the same as stoch_simul , the BK problem is still there when I run estimation. The messages are:Error using print_info (line 39)
Blanchard Kahn conditions are not satisfied: no stable equilibrium

Error in initial_estimation_checks (line 101)
print_info(info, options_.noprint)

Error in dynare_estimation_1 (line 122)
initial_estimation_checks(xparam1,gend,data,data_index,number_of_observations,no_more_missing_observations);

Error in dynare_estimation (line 62)
dynare_estimation_1(var_list,varargin{:});

Error in stimulus_2 (line 447)
dynare_estimation(var_list_);

Error in dynare (line 120)