Crash during estimation with unit roots

Estimation ML/Bayesian estimation
1

Hi,

I am getting this error in Dynare 3 "Error in ==> dynare at 26
evalin(‘base’,fname) ;

I have checked my mod file and I think it’s correct. What am I missing?

2

Please provide the file

3

Please find attached file. Thanks for your kind response.
Dynare_Error.zip (17.8 KB)

4

When you run ML, you need to make sure that all parameters are properly initialized. Also, your model has a unit root and thus requires the diffuse_filter.
In the unstable version, you can use

[code]estimated_params_init(use_calibration);
end;

estimation(datafile=data_nk,first_obs=1,mode_compute=5,diffuse_filter);
[/code]

5

[quote=“jpfeifer”]When you run ML, you need to make sure that all parameters are properly initialized. Also, your model has a unit root and thus requires the diffuse_filter.
In the unstable version, you can use

[code]estimated_params_init(use_calibration);
end;

estimation(datafile=data_nk,first_obs=1,mode_compute=5,diffuse_filter);
[/code][/quote]

Thanks for Your kind response. This worked in the recent version of Dynare and I am happy about that but it still doesn’t work in Dynare 3. Both of these gives synatx error in Dynare 3. Since, I am dealing with some matrices I have to use Dynare 3. Kindly help me with Dynare 3.

6

In that case, you need to provide the initial parameter values explicitly and use

7

[quote=“jpfeifer”]In that case, you need to provide the initial parameter values explicitly and use

lik_init=2

Thanks for your kind response. I tried with what you suggested but, I am getting same error. I have attached the mod file. I added estimated_params_init and estimated_params_bounds block separately to check whether that makes it work. But it is still not working.
Estimation1.mod (3.08 KB)

8

I was able to run the attached files in Dynare 3.6.4
Dynare_v3_mod.zip (3.44 KB)

9

Thanks for your kind response. It worked for me as well. I am facing the same problem with the attached mod file also. It would be great if you can tell me the probable reasons for this error so that I can try to figure out on my own. I would be obliged if you can help me with the attached mod file. I am estimating the model using same data.
Estimate_Imp_Tech_Inf.mod (3.82 KB)

10

Please always provide the error message you are facing. In this case, the problem comes from Dynare 3 not knowing block comments with /*. You must use

// //This file estimates the New Keynesian model As in Abhishek Kumar (2017): // This implementation was written by Abhishek Kumar. //@ Abhishek Kumar //

11

I will keep that in mind. Thanks for your kind response. It worked.

12

Hi,

I am facing an error with Identification command in dynare. I check the Blanchard Kahn condition before estimation and it says rank condition satisfied. But when I go for Identification it says "Parameter error:
The model does not solve for ML_Starting_value with error code info = 3

info==3 %! Blanchard & Kahn conditions are not satisfied: no stable equilibrium."

Can you please let me know the probable reason for this and how to approach this problem.

13

In Dynare 4.5, you need to add

to the identification command

14

[quote=“jpfeifer”]In Dynare 4.5, you need to add

to the identification command[/quote]

Thanks for your kind response. It worked.