Dear professor Pfeifer and dynare users,
I noticed that the CTW (2011) code runs with dynare 4.4.3 (Johannes mentioned it in a previous post) and other earlier versions of dynare. But it does not work with 4.5.4 version (I have tried with 4.5.0 too and it did not work either, so the problem may be with the 4.5.0 update). I am using the code and files in their “CTW main model estimation” folder without alteration.
Would you have any idea what is going on, and how to fix it?
Thank you for your very useful help in this forum.
Below is the error I get:
You did not declare endogenous variables after the estimation/calib_smoother command.
The posterior mode file ctw_employer_surplus_mean_MASTER has been generated using an older version of Dynare. It cannot be verified if it matches the present model. Proceed at your own risk.
Warning: Some of the parameters have no value (mupsiPercent) when using initial_estimation_checks. If these parameters are not initialized in a steadystate file or a steady_state_model-block, Dynare may not be able to solve the model…
Error in computing likelihood for initial parameter values
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 print_info (line 42)
Blanchard Kahn conditions are not satisfied: no stable equilibrium
Error in print_info (line 42)
error([‘Blanchard Kahn conditions are not satisfied: no stable’ …
Error in initial_estimation_checks (line 175)
print_info(info, DynareOptions.noprint, DynareOptions)
Error in dynare_estimation_1 (line 165)
Error in dynare_estimation (line 105)
Error in ctw_employer_surplus (line 2767)
Error in dynare (line 223)