# Estimation RBC stochastic model

**URL:** <https://forum.dynare.org/t/estimation-rbc-stochastic-model/3631>\
**Category:** ML/Bayesian estimation\
**Created:** [19 January 2014 23:01 UTC](https://forum.dynare.org/t/estimation-rbc-stochastic-model/3631 "2014-01-19T23:01:15Z")\
**Posts on this page:** 1\
**Showing post:** 2

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**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\
**Post date:** [20 January 2014 09:22 UTC](https://forum.dynare.org/t/estimation-rbc-stochastic-model/3631/2 "2014-01-20T09:22:58Z")

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Your problem is that your initial values for steady state computation are not good for different parameters. Hence, during estimation, Dynare often cannot compute the steady states. See e.g. [[Bayesian Estimation and Steady State Updating](https://forum.dynare.org/t/bayesian-estimation-and-steady-state-updating/2787/1)) and “Remark 14 (initval vs. steady\_state\_model vs. steadystate-file)” in [sites.google.com/site/pfeiferecon/Pfeifer\_2013\_Observation\_Equations.pdf](https://sites.google.com/site/pfeiferecon/Pfeifer_2013_Observation_Equations.pdf).

In your case, try using a different solve\_algo by putting e.g.

```auto

```

before your estimation command.

Finally, using only two observations is odd.

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