wm3.mod (3.94 KB)Hello,

I am trying to estimate the Gali & Monacelli, NBER w.p. 8905 model using CPI data from Fred, but I keep getting these errors(see below). I have read the forms, but I had no luck resolving the issue. If someone could be so kind to point me in the right direction it would be greatly appreciated.

Thank you in advance.

Regards,

Richard

## output

dynare wm3

Configuring Dynare …

[mex] Generalized QZ.

[mex] Sylvester equation solution.

[mex] Kronecker products.

[mex] Sparse kronecker products.

[mex] Local state space iteration (second order).

[mex] Bytecode evaluation.

[mex] k-order perturbation solver.

[mex] k-order solution simulation.

[mex] Quasi Monte-Carlo sequence (Sobol).

[mex] Markov Switching SBVAR.

Starting Dynare (version 4.4.3).

Starting preprocessing of the model file …

Found 18 equation(s).

Evaluating expressions…done

Computing static model derivatives:

- order 1

Computing dynamic model derivatives: - order 1
- order 2

Processing outputs …done

Preprocessing completed.

Starting MATLAB/Octave computing.

STEADY-STATE RESULTS:

y_os 0

mc_os 0

ppi_os 0

r_os 0

a_os 0

a 0

ygap 0

ppi_h 0

rnat 0

r 0

y 0

yflex 0

ppi 0

s 0

q 0

e 0

p_h 0

cpi_level 0

You did not declare endogenous variables after the estimation/calib_smoother command.

Loading 180 observations from data.mat

Warning: Matrix is singular to working precision.

In lyapunov_symm at 145

In dsge_likelihood at 374

In initial_estimation_checks at 47

In dynare_estimation_1 at 179

In dynare_estimation at 89

In wm3 at 251

In dynare at 180

Warning: Matrix is singular to working precision.

In kalman_filter at 182

In dsge_likelihood at 646

In initial_estimation_checks at 47

In dynare_estimation_1 at 179

In dynare_estimation at 89

In wm3 at 251

In dynare at 180

Error in computing likelihood for initial parameter values

ESTIMATION_CHECKS: There was an error in computing the likelihood for initial parameter values.

ESTIMATION_CHECKS: You should try using the calibrated version of the model as starting values. To do

ESTIMATION_CHECKS: this, add an empty estimated_params_init-block with use_calibration option immediately before the estimation

ESTIMATION_CHECKS: command (and after the estimated_params-block so that it does not get overwritten):

Error using print_info (line 98)

Likelihood is not a number (NaN) or a complex number

Error in print_info (line 98)

error(‘Likelihood is not a number (NaN) or a complex number’);

Error in initial_estimation_checks (line 69)

print_info(info, DynareOptions.noprint, DynareOptions)

Error in dynare_estimation_1 (line 179)

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

Error in dynare_estimation (line 89)

dynare_estimation_1(var_list,dname);

Error in wm3 (line 251)

dynare_estimation(var_list_);

Error in dynare (line 180)

evalin(‘base’,fname) ;