initial parameter

[aghayan_beh]

Hi.when I estimated my model, dynare warned me that Error in computing likelihood for initial parameter values, I check my parameters and priors but i do not understand what should I do next. I attached my codes and data file here.
[color=#FF0000]Error in computing likelihood for initial parameter values
Error using print_info (line 43)
Blanchard Kahn conditions are not satisfied: indeterminacy
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 trade_b (line 674)
dynare_estimation(var_list_);
Error in dynare (line 120)
evalin('base',fname) ;

data_tn.m

trade_b.mod

Thank you for your help

[jpfeifer]

First make your model run with stoch_simul. Already the check-command shows you that the Blanchard-Kahn conditions are not satisfied. There is most probably a timing error. For example,

Code: Select all

r_k(+1)=((1+kappa)/(kappa+tau))*(r-pi(+1));


looks strange in this context. You are defining the expected return here, not the actual return.