I also fixed the last problem but now I got a new message error:
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 63)
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 63)
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 164)
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.driver (line 398)
oo_recursive_=dynare_estimation(var_list_);
Error in dynare (line 293)
evalin(‘base’,[fname ‘.driver’]) ;
I guess this has something to do with the measurement error but I read your pdf and also other references and I dont really understand how I have to deal with measurement errors. In my files, I only introduced one (y_obs measuremnt error).
Here are all my files.
SOEMData.xlsx (83.2 KB)
Model.mod (2.9 KB)
Model_steadystate.m (12.4 KB)