Hi everybody!!!

I have been working on a code from Ireland and I succeed writing it down but when I want to make the estimation with data I can’t do it. Someone can help me? I am attaching my code and the data, please if someone can help me!!

data.xls (40.5 KB)

Code.mod (1.35 KB)

what errors do you get?

When I run Dynare I got this:

**

**Configuring Dynare …

[mex] Generalized QZ.

[mex] Sylvester equation solution.

[mex] Kronecker products.

[mex] Sparse kronecker products.

[mex] Bytecode evaluation.

[mex] k-order perturbation solver.

[mex] k-order solution simulation.

Starting Dynare (version 4.2.5).

Starting preprocessing of the model file …

ERROR: intento2_estimation.mod:82.27-29: syntax error, unexpected NAME

??? Error using ==> dynare at 114

DYNARE: preprocessing failed

dynare intento2_estimation.mod

Configuring Dynare …

[mex] Generalized QZ.

[mex] Sylvester equation solution.

[mex] Kronecker products.

[mex] Sparse kronecker products.

[mex] Bytecode evaluation.

[mex] k-order perturbation solver.

[mex] k-order solution simulation.

Starting Dynare (version 4.2.5).

Starting preprocessing of the model file …

Substitution of endo lags >= 2: added 1 auxiliary variables and equations.

Found 9 equation(s).

Evaluating expressions…done

Computing static model derivatives:

- order 1

Computing dynamic model derivatives: - order 1
- order 2

Processing outputs …done

Preprocessing completed.

Starting MATLAB/Octave computing.

STEADY-STATE RESULTS:

y 0

m 0

mu 0

r 0

pi 0

a 0

e 0

z 0

EIGENVALUES:

Modulus Real Imaginary

```
0 -0 0
0 0 0
0 -0 0
1.535e-016 1.535e-016 0
0.4463 0.4463 0
0.9579 0.9579 0
0.9853 0.9853 0
0.9903 0.9903 0
1 1 0
1.112 1.112 0
Inf -Inf 0
Inf Inf 0
```

There are 3 eigenvalue(s) larger than 1 in modulus

for 3 forward-looking variable(s)

The rank condition is verified.

You did not declare endogenous variables after the estimation command.

This version of Dynare cannot estimate non linearized models!

Set “order” equal to 1.

??? Error using ==> cell.strmatch at 21

Requires character array or cell array of

strings as inputs.

Error in ==> read_variables at 74

iv =

strmatch(var_names_01(dyn_i_01,:),raw(1,:),‘exact’);

Error in ==> dynare_estimation_init at 290

rawdata =

read_variables(options_.datafile,options_.varobs,],options_.xls_sheet,options_.xls_range);

Error in ==> dynare_estimation_1 at 37

[data,rawdata,xparam1] =

dynare_estimation_init(var_list_);

Error in ==> dynare_estimation at 62

dynare_estimation_1(var_list,varargin{:});

Error in ==> intento2_estimation at 224

dynare_estimation(var_list_);

Error in ==> dynare at 120

evalin(‘base’,fname) ;****

I am not very familiar with estimation but have you linearised the model?

yes, the model is already linearised.

As I said I am not familiar with estimating models but I always put my (calibrated) models in log-linear form. In that case, you should start the model block with the command “model(linear)” as you do and I also need to say to dynare to take only a first-order approximation. This is done at the very last command:

stoch_simul(order=1, hp_filter=1600, ar=10, irf=200);

I think you need to include “order=1” as well. The error message tells you something like that. Does that help?

Kyriacos

Thanks for the answer. But it still doesn’t work and also it generates new types of errors.

I would like to make the estimation of the model with real data.

sorry, I cant help you more…

The errors you were getting were because Dynare couldn’t load the data correctly. The best thing to do, generally, is to save the data to a .mat file. Excel is simply error ridden when it comes to interacting with Matlab. You need to save the series as column vectors with the same name as in the file. I attached a version of your data as a mat file and your mod file that I was working with. The next issue is that your model doesn’t satisfy the Blanchard-Kahn conditions. You will see the error when you run the code. You will have to work on that…

CodeModified.zip (4.15 KB)

ok, thank you so much for your answer.

Yes I have just figured out, I am working on it right now in order to fix it.

Thanks again for your answer and help.