Dear Johannes,

My post is lengthy, sorry about that and please read when you have time.

1.Is using `mode_file`

option in estimation with a mode file from a previous estimation same as using `estimated_params_init(use_calibration)`

with calibrated values in parameter block taken from modes of a previous estimation?

2. Using filename_mode.mat file from the previous round estimation sequentially in mode_file option in current round estimation should produce different results? I read previous discussion [A question on mode_file option in Dynare) but not sure.

3. Someone told me to use higher value for investment adj cost parameter to reduce investment volatility. So I wanted to use:

instead of `tau, normal_pdf, 0.67, 0.05;`

. It returns an error ```
Error using check_prior_bounds (line 39)
Initial value(s) of tau 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.
```

So I set `options_.prior_trunc=0;`

. Although it runs, but says parameter values are not compatible with some equations: [code]"STEADY: numerical initial values or parameters incompatible with the following equations

17 23

Check whether your model is truly linear. Put “resid(1);” before “steady;” to see the problematic equations.\n[/code].

I guess this is due to using `prior_trunc=0`

?

- When observing wage price index, w_obs, that has missing values with endogenous_prior option, I get

[code]Error using print_info (line 114)

Prior density is not a number (NaN)

Error in print_info (line 114)

error(‘Prior density is not a number (NaN)’);

Error in initial_estimation_checks (line 169)

print_info(info, DynareOptions.noprint, DynareOptions)

Error in dynare_estimation_1 (line 149)

oo_ =

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

Error in dynare_estimation (line 105)

dynare_estimation_1(var_list,dname);

Error in model (line 901)

oo_recursive_=dynare_estimation(var_list_);

Error in dynare (line 223)

evalin(‘base’,fname) ;

[/code]

But estimation works without any trouble with w_obs if I don’t use endogenous_prior option. Is missing value in a series can be a problem with this option?

Thanks,

Sadia