Bayesian parameter estimation&DSGE

Estimation ML/Bayesian estimation
1

Dear All：
I’m a dynare beginner.I have a problem in Bayesian parameter estimation.
There are three exogenous shocks in my model: technology shock and government purchase shock and tax shocks.
I want to use Y_obs for Bayesian parameter estimation.
For Y_obs’ data has been processed, including converting the nominal value into the actual value, taking logarithm and eliminating the seasonal trend.
But the running result shows that it is wrong.
The details are as follows:The Jacobian of the dynamic model contains Inf. For more information, use options_.debug.
Here are my mod file and Y_obs’ data.

Thanks
Y_obs.xlsx (10.6 KB)
Alinear10.mod (2.2 KB)

2

You are neglecting the parameter dependence in your estimation and did not properly detrend your data and did not specify a correct observation equation. Please see Pfeifer(2013): “A Guide to Specifying Observation Equations for the Estimation of DSGE Models” for more information.