Dynare forums

Dear all,
I'm trying to run Sargent's codes from (Practicing Dynare) under dynare 4.2.4 and non of the codes seem to work under it.
In running (sargent77Bayes.mod) file, i get the following error massage:

This version of Dynare cannot estimate non linearized models!
Set "order" equal to 1.

Loading 34 observations from cagan_data.mat

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 122
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 ==> sargent77Bayes at 121
dynare_estimation(var_list_);

Error in ==> dynare at 120
evalin('base',fname) ;

The code runs just fine under dynare 4.0.4, but does any one know how can I fix it and make it work under dynare 4.2.4? thanks alot
I am attaching the file and the data and I appreciate your help.

This type of error indicates an indeterminacy of the model for the parameters given as a starting value of the optimization.

The fact that the behavior changed between versions of Dynare may come from several sources: we fixed bugs since version 4.0.4, we changed the random number generators...

Try to play with the initial values given in estimated_params. You may get a valid starting point by changing values a little bit.

Hi ,Hbadrakhan
when I run my mod file(not Sargent codes,just my own code) it has quite same error message as yours.Did you fix the problem yet? How did you fix it ?
Many thanks!

??? 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 122
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 ==> houseinvest at 227
dynare_estimation(var_list_);

Error in ==> dynare at 120
evalin('base',fname) ;