Hi,
Can you help me with the error:
Cannot use parameter values from calibration as they violate the prior bounds.Error using check_prior_bounds (line 38)
Error using check_prior_bounds (line 38)
Initial value(s) of SE_eps_delta_q, SE_eps_z, SE_eps_y_star, SE_eps_pi_star are outside parameter
bounds. Potentially, you should set prior_trunc=0. If you used the mode_file-option, check whether your
mode-file is consistent with the priors.
test.mod (2.3 KB)
There were various syntax issues in your model. Start from the attached file:
test5.mod (2.3 KB)
Before you move to estimation, make sure a calibrated version of the model works. Currently, the Blanchard-Kahn conditions are not satisfied. That is often caused by timing error or another mistake in the model equations.
Thank you so much for your help professor.
I’m new to the model and currently assigned to do the forecasting task and happenly knowing this method. Can you help me which part in my work is timing error in my model equation?
I’m looking forward to hearing from you
Sincerely yours
I can only give you the generic advice: start from a smaller model that works.