I just started learning how to use Dynare, then maybe my problem can easily be solved.
I am trying to estimate a model based on Gertler and Karadi paper “A model of unconventional monetary policy” using brazilian data but when I try to estimate the model it doesn´t run correctly.
Any help would be greatly appreciated.
Thanks in advance.
G_K_est.xls (31 KB)
G_K_model.mod (2.97 KB)
I forgot to post the error message, here it is:
Starting preprocessing of the model file …
ERROR: rascunho.mod:107.17: syntax error, unexpected ‘;’, expecting EQUAL
I have searched for this unexpected “;” but there isn´t one.
Thanks in advance
You forgot to put end; after the initival block. In the end of your code you need to put “;”, after the estimation command. By the way, the excel file you sent differs from the one in your code. I think your priors look strange for some parameters as well.
There is another, more serious problem: you need exactly as many shocks as observed variables. You need either to add shocks or reduce the number of observed variables.