# DSGE estimate Problem of NK model with financial accelerator

Hi everybody

I’ve been trying to estimate a DSGE model with Dynare but I keep getting the following error message:

dynare nk_est1

Configuring Dynare …
[mex] Generalized QZ.
[mex] Sylvester equation solution.
[mex] Kronecker products.
[mex] Sparse kronecker products.

Starting Dynare …
Starting preprocessing of the model file …
20 equation(s) found
Processing derivation …
Processing Order 1… done
Processing Order 2… done
Processing outputs …
Preprocessing completed.
Starting Matlab computing …

lamd 3.84718e-015
c -2.22045e-016
b 0
m -1.66533e-016
e 0
r 1.28716e-015
h 1.77636e-015
w -2.22045e-015
y -4.88498e-015
k -1.77636e-014
a 0
i -1.59317e-014
xi 7.77156e-016
z 1.3288e-014
mu 1.28716e-015
pi 1.28716e-015
f 6.66134e-016
q 1.66533e-015
x 0
n -2.93099e-014

EIGENVALUES:
Modulus Real Imaginary

``````  5.936e-019       5.936e-019                0
6.191e-014      -6.191e-014                0
0.001305        -0.001305                0
0.616            0.616                0
0.656            0.656                0
0.721            0.721                0
0.763            0.763                0
0.8771           0.8771                0
0.9786           0.9786                0
1.543            1.199           0.9709
1.543            1.199          -0.9709
Inf              Inf                0
``````

There are 3 eigenvalue(s) larger than 1 in modulus
for 5 forward-looking variable(s)

The rank conditions ISN’T verified!

??? Attempted to access k(1); index out of bounds because numel(k)=0.

Error in ==> draw_prior_density at 114
binf = abscissa(k(1));

Error in ==> plot_priors at 97
[x,f,abscissa,dens,binf,bsup] = draw_prior_density(i);

Error in ==> dynare_estimation_1 at 92
plot_priors

Error in ==> dynare_estimation at 62
dynare_estimation_1(var_list,varargin{:});

Error in ==> nk_est1 at 309
dynare_estimation(var_list_);

Error in ==> dynare at 102
evalin(‘base’,fname) ;

I am not be able to find the source of the problem. Any thoughts/advice would be greatly appreciated.
Many thanks!!!
data1.xls (18.5 KB)
nk_est1.mod (2.14 KB)

Hi,

One of the message lines says the rank condition is not verified.

Best regards,
Kaz

Hi,

ur rank conditions r not satisfied, means u have to check either the timing of ur variables or the value of some parameters in ur model. Also, if u add the instruction “resid(1)” just before “steady” you’ll see that too many equations have non-zero residuals, especially eq.7 showing a residual of 6.41 . Maybe you should try to change ur initial guesses in order to get residuals close to 0.

Hope this helps.

Hi,

I re-specified the model and now the model itself seems ok.

Again, thanks.
Kaz

[quote=“yshguo”]Hi everybody

I’ve been trying to estimate a DSGE model with Dynare but I keep getting the following error message:

dynare nk_est1

Configuring Dynare …
[mex] Generalized QZ.
[mex] Sylvester equation solution.
[mex] Kronecker products.
[mex] Sparse kronecker products.

Starting Dynare …
Starting preprocessing of the model file …
20 equation(s) found
Processing derivation …
Processing Order 1… done
Processing Order 2… done
Processing outputs …
Preprocessing completed.
Starting Matlab computing …

lamd 3.84718e-015
c -2.22045e-016
b 0
m -1.66533e-016
e 0
r 1.28716e-015
h 1.77636e-015
w -2.22045e-015
y -4.88498e-015
k -1.77636e-014
a 0
i -1.59317e-014
xi 7.77156e-016
z 1.3288e-014
mu 1.28716e-015
pi 1.28716e-015
f 6.66134e-016
q 1.66533e-015
x 0
n -2.93099e-014

EIGENVALUES:
Modulus Real Imaginary

``````  5.936e-019       5.936e-019                0
6.191e-014      -6.191e-014                0
0.001305        -0.001305                0
0.616            0.616                0
0.656            0.656                0
0.721            0.721                0
0.763            0.763                0
0.8771           0.8771                0
0.9786           0.9786                0
1.543            1.199           0.9709
1.543            1.199          -0.9709
Inf              Inf                0
``````

There are 3 eigenvalue(s) larger than 1 in modulus
for 5 forward-looking variable(s)

The rank conditions ISN’T verified!

??? Attempted to access k(1); index out of bounds because numel(k)=0.

Error in ==> draw_prior_density at 114
binf = abscissa(k(1));

Error in ==> plot_priors at 97
[x,f,abscissa,dens,binf,bsup] = draw_prior_density(i);

Error in ==> dynare_estimation_1 at 92
plot_priors

Error in ==> dynare_estimation at 62
dynare_estimation_1(var_list,varargin{:});

Error in ==> nk_est1 at 309
dynare_estimation(var_list_);

Error in ==> dynare at 102
evalin(‘base’,fname) ;

I am not be able to find the source of the problem. Any thoughts/advice would be greatly appreciated.
Many thanks!!![/quote]

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i am running the similar model . my question is about parameter calibration
given the steady state equilbrium, (see in Christensen and Dib 2007), i find that if parameters(in the paper)–thet ,alpha ,S ,beta-,delta are calibrated. we can get the steady value of i/y. here is the problem . in the code attached , the steay value of i/y is also calibrated (maybe form data) and not consistent with other calibrated parameters. How to solve it?
i am a newbie. many thanks for your help

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Kaz: Could you post the final codes, the ones that run?

Hi kwaner,

I don’t keep the file. But, I remember I just gave soft touch to it.
Sorry.

Best,
Kaz