Error in estimation using dynare 4.2.0

Dynare help (legacy posts)
1

Dear all.

I am facing a problem in solving Open Eocnomy New Keyesian DSGE model.
While I tried to solve the model, dynare gave me back the following message.

This version of Dynare cannot estimate non linearized models!
Set “order” equal to 1.

??? Reference to non-existent field ‘y’.

Error in ==> read_variables at 63
dyn_tmp_01 = s.(deblank(var_names_01(dyn_i_01,:)));

Error in ==> dynare_estimation_1 at 269
rawdata = read_variables(options_.datafile,options_.varobs,],options_.xls_sheet,options_.xls_range);

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

Error in ==> newzealand at 254
dynare_estimation(var_list_);

Please give me a hint about the source of my trouble. Here attached is the mod file and the data file.
Thanks in advance!!
newzealand.xls (24.5 KB)
newzealand.mod (2.67 KB)

2

Hi,
you can solve models in higher order, i.e. use

but you cannot estimate them in higher order, i.e.

3

Thank you for answering.

I tried to correct the problem as you told me (stoch_simul(order=2)),
but another problem is occured.

??? Error using ==> chol
Matrix must be positive definite.

Error in ==> metropolis_hastings_initialization at 52
d = chol(vv);

Error in ==> random_walk_metropolis_hastings at 58
ix2, ilogpo2, ModelName, MhDirectoryName, fblck, fline, npar, nblck, nruns, NewFile, MAX_nruns, d ] = …

Error in ==> dynare_estimation_1 at 1106
feval(options_.posterior_sampling_method,‘DsgeLikelihood’,options_.proposal_distribution,xparam1,invhess,bounds,gend,data,…

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

Error in ==> newzealand at 254
dynare_estimation(var_list_);

Error in ==> dynare at 132
evalin(‘base’,fname) ;

What can I do at this time? I attach the .mod file. Is it wrong?
Help me please
newzealand.mod (2.67 KB)

4

Hi,

It works fine using Octave 3.2.4 and Dynare 4.1.3. Attached the files I used. Please note that I made few changes. I changed ‘pi’ to ‘pie’, decrease mh_replic from 20000 to 2000. I also use simulated data because when I used your data set it produced error saying that “the data are perfectly correlated”.

I used order=2 for simulation and order=1 for estimation.

The following are the posterior maximization and estimation results.

artificialnz.m (564 KB)
newzealand.mod (2.74 KB)

5

Thank you for answering!!

But I have another question about your answer. ( I’m new in dynare. :cry: )
What’s the meaning of the ‘simulated data’ ? Can I make this ? How?
And, when I want to estimate DSGE model in particular area(ex. Newzealand, South korea etc), can I use simulated data?
( I guess that simulated data is different from actual data, so I may not use simulated data )

Plus, I tried to play the simulated data and mod file as you attached it.
But dynare gives warnings like below.

Warning: File ‘nz/Output’ not found.

In CheckPath at 42
In dynare_estimation_1 at 901
In dynare_estimation at 62
In nz at 257
In dynare at 132
Warning: File ‘nz/metropolis’ not found.
In CheckPath at 42
In metropolis_hastings_initialization at 46
In random_walk_metropolis_hastings at 58
In dynare_estimation_1 at 1106
In dynare_estimation at 62
In nz at 257
In dynare at 132

What’s the meaning? Can I ignore that?

Thanks a lot!!

6

Hi,

In fact I am also new in Dynare. :smiley:
Simulated data comes from simulation (stoch_simul) command. Of course it is not real data. You can produce simulated data by putting

after stoch_simul command. It will create simulated data named artificialnz.m. Of course you have to use real data if you want to estimate “real” parameters.

I am not sure about the warning messages. Maybe others can answer it. My apologize.

RZ

7

You can ignore the warnings. They just say that the respective folder does not exist yet on the harddrive and will now be created.

8

Thanks a lot !!
I received much help!! :smiley: