B-K not satisfied: no stable equil vs indeterminacy
Posted: Mon Feb 27, 2012 1:03 am
The steady states of my model are okay. But when I run stochastic simulation, Matlab sometimes says that the B-K condition is not satisfied due to no stable equilibrium, and sometimes it says that the B-K condition is not satisfied due to indeterminacy. So what should I do to fix the problem in each case? Thanks!