Dynare forums

Hello

I have tried to estimate a NK-DSGE model with stock and bond markets, however I got results without an error but the both markets showed 100% co-relation and same response to shock. I wonder what is wrong, the steady state is accepted by the model is also same and highly negative, there is something wrong, if you please have look at help me.

Regards


Ali

JUST to say that Estimation may take longer so if you please just simulate and see the results, because it is the same problem even in simulation. regards