Blanchard Kahn Conditions-DSGE

[ecrgap]

Hi,

does the dsge instruction check automatically for the Blanchard-Kahn conditions?

Thanks

[TomDoan]

It's not specifically the Blanchard-Kahn conditions, but the more general check described in Sims, Christopher A. (2002), 'Solving Linear Rational Expectations Models', Computational Economics, 20 (1), 1-20. If there's a problem, you'll get the error message:

FO17. Mismatch between unstable roots and expectational terms.