Hello !

I am trying to replicate the model of " Monetary policy transmission in China: A DSGE model with parallel shadow banking and interest rate control ", the stoch_simul can run well ,but there is a problem about bayesian estimation . the result is

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

ESTIMATION_CHECKS: If this is not a problem with the setting of options (check the error message below),

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 initial_estimation_checks (line 53)

initial_estimation_checks:: Estimation can’t take place because too many shocks have been calibrated with a zero variance!

Error in initial_estimation_checks (line 53)

error([‘initial_estimation_checks:: Estimation can’‘t take place because too many shocks have been calibrated with a zero variance!’])

Error in dynare_estimation_1 (line 165)

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 sb_est (line 569)

oo_recursive_=dynare_estimation(var_list_);

Error in dynare (line 223)

evalin(‘base’,fname) ;

I don’t know where the mistakes are , can anyone help me ,thank you !

Here is my code and date.sb_est.zip (17.5 KB)