by mknomics » Sun Nov 11, 2012 4:36 am
It looks like you don't have a stable steady state? Have you tried to simulate the model?
Here is some advice that I got earlier, "Before estimating, make sure, you can simulate your model."
I will try to look at it in more detail soon and hopefully someone else can also help you find an answer. I know that there are several posts for the Blanchard Kahn error that you are getting so it may be worth reading those posts if you haven't already.