Dimension of arrays are not consistent?

General DSGE Modeling
1

Hi there,

I am attempting to replicate the paper of Fei Han: The impact of demographic change on the natural rate of interest in Japan - using data from the UK.

Unfortunately, when running the model I encounter this error:
Error using vertcat
Dimensions of arrays being concatenated are not consistent.

I am unable to find any previous questions surrounding this topic in the forum, and I believe my data columns in excel are equal in length. I have uploaded both my mod file and XLXS. Any help would be greatly appreciated!

datattest.xlsx (30.9 KB)
feihan.mod (2.9 KB)

2

I cannot replicate your error message. That being said, it seems like the means of the variables in the data and the model are inconsistent. Finally, are you sure the model you have in mind can be estimated at first order? It seems like there are uncertainty shocks that will drop out of the model when linearized.

3

Hi Professor,

Thanks so much for your response. Can you clarify what you mean by: The means of the variables in the data and the model are inconsistent?

Thanks so much!

4

Apologies for posting this separately - but did the model run for you?

Thanks!

5
  1. Yes, the model ran but errors out due to a non-positive definite Hessian.
  2. Your observation equation is wrong. The steady states of the variables in the model are 0 but the data means are not zero. That usually requires a unit root to bring up the mean of the model variables to the one in the data.