Baseline DSGE _FV_estimation

Estimation
1

Hello, Dynare,

I tried to estimate the code of FV “Baseline DSGE” from examples of dynare.
First, I log-linearized the model using exp(x). Then I used the data for US as FV in his papers and the same priors as he used.
However, my estimation fails when I use mode compute=4, 5, 8, 9. With mode compute 6 it works but does not seem converge (also according to the converge diagnostics graphs).

  • The error with mode compute 5,8 is “Error using fzero (line 328) Function value at starting guess must be finite and real”;
  • The error with mode compute 4 - Kernel optimization problem.

I tried to debug ss file by changing fzero to fsolve but it does not help, also I tried to put just number instead of labor “l^d” but it did not help.

May I have some suggestion to correct the estimation please :pray:

logNK_baseline4.mod (13.4 KB)
logNK_baseline4_steadystate.m (4.7 KB)
data1.xlsx (25.9 KB)

2

Thanks for pointing this out. The proper error handling would be the one at

A big issue in your model is the improper handling of parameter dependence which causes identification failures.

3

Thank you very much for it. I will check the new file.