Dynare forums

Hi, I have a little problem here, my two data of my four time series data used in estimation contain unit root. Should I use mode_compute=6 and do not need do anything more when estimate the model ? P.S., The model is stationary and the data is supposed to be stationary but it really contain unit root.

You have to make the model and the data consistent. Usually, you will need an observation equation and an appropriate detrending (e.g. demeaned first differences or one-sided HP-filter)