Hi everyone,

I am running model of Uribe. In simulation, I obtain the same results with Uribe. But estimation does not work even if I use the same priors with the paper and mode-compute-6. The problem may be related to measurement errors equation. But i dont know how to deal with this. Estimation works when i am estimating 16 parameters. But if i include parameter gd and estimate 17 paramaters, it fails. It gives me this results:

Configuring Dynare …

[mex] Generalized QZ.

[mex] Sylvester equation solution.

[mex] Kronecker products.

[mex] Sparse kronecker products.

[mex] Local state space iteration (second order).

[mex] Bytecode evaluation.

[mex] k-order perturbation solver.

[mex] k-order solution simulation.

[mex] Quasi Monte-Carlo sequence (Sobol).

[mex] Markov Switching SBVAR.

Starting Dynare (version 4.3.1).

Starting preprocessing of the model file …

Found 23 equation(s).

Evaluating expressions…done

Computing static model derivatives:

- order 1

Computing dynamic model derivatives: - order 1

Processing outputs …done

Preprocessing completed.

Starting MATLAB/Octave computing.

STEADY-STATE RESULTS:

c 0.150095

h 0.179761

lamda 275.756

a 1

g 1.01

k 0.292417

d 0.007

i 0.0396226

r 0.105919

y 0.211472

k_over_gh 1.61059

v 1

s 0.0211472

mu 1

gy 1.01

gc 1.01

gi 1.01

tb 0.000607129

tby 0.00287096

gy_obs 0.00995033

gc_obs 0.00995033

gi_obs 0.00995033

tby_obs 0.00287096

Loading 105 observations from arj_data.m

SOLVE: maxit has been reached

Warning: File ‘mh_scale_fname’ not found.

In dynare_estimation_1 at 119

In dynare_estimation at 70

In uribefinansesty at 327

In dynare at 120

SOLVE: maxit has been reached

SOLVE: maxit has been reached

Error in computing likelihood for initial parameter values

Error using print_info (line 57)

Impossible to find the steady state. Either the model doesn’t have a unique

steady state of the guess values are too far from the solution

Error in initial_estimation_checks (line 69)

print_info(info, DynareOptions.noprint)

Error in dynare_estimation_1 (line 147)

oo_ =

initial_estimation_checks(objective_function,xparam1,dataset_,M_,estim_params_,options_,bayestopt_,oo_);

Error in dynare_estimation (line 70)

dynare_estimation_1(var_list,dname);

Error in uribefinansesty (line 327)

dynare_estimation(var_list_);

Error in dynare (line 120)

evalin(‘base’,fname) ;

Another question is: i am making first order approximation and working with nonlinear model. ı did not loglinearize the model. Why do variables dynare names as smoothed variables take negative values?

I will really appreaciate your help. Thanks!