Help with Code Modification and File Regeneration

Hi,

I am a newcomer trying to replicate a research paper’s code(RBC_q0.mod). I encountered an issue while attempting to correct a discrepancy in the code (RBC_q0_new.mod). Specifically, I added a term varrho(+1) at the end of line 134 and added a corresponding line at 135. Additionally, I made adjustments in the steady state equations at line 240 and rewrote line 241 accordingly.

However, upon running the updated code, I encountered the following error message: “There are 21 eigenvalue(s) larger than 1 in modulus for 19 forward-looking variable(s). The rank condition ISN’T verified!” I am unsure how to resolve this issue. Could you kindly provide some guidance on how to address it?

Furthermore, I would like to inquire about the generation of the files RBC_q0_mean.mat, RBC_q0_mh_mode.mat, RBC_q0_mode.mat, RBC_q0_params.mat, and RBC_q0_results.mat. After making modifications to the original code, how can I regenerate these files? For instance, if my modified .mod file is named RBC_q0_new.mode, I attempted to modify the code as follows:

matlab
Copy code
estimation(
order=1,
datafile=‘dataNZ_cubic_trend.m’,
presample=29,
first_obs=1,
prefilter=1,
plot_priors=0,
lik_init=2,
mh_nblocks=4,
mh_jscale=0.38,
% mode_compute=5,
mh_replic=00000,
mode_compute=0,
mode_file=RBC_q0_new_mode,
% load_mh_file,
% mh_drop=.1,
% load_results_after_load_mh,
% nodiagnostic,
% posterior_nograph
% bayesian_irf,
% irf=20,
mh_conf_sig=0.90,
conf_sig=0.90
);

Could you please advise if my approach is correct? Also, how can I regenerate the load_mh_file?

I would greatly appreciate any assistance you could provide.

Best regards,
Taylor

dataNZ_cubic_trend.m (16.8 KB)
RBC_q0.log (7.8 KB)
RBC_q0.mod (11.5 KB)
RBC_q0_mean.mat (8.0 KB)
RBC_q0_mh_mode.mat (4.4 KB)
RBC_q0_mode.mat (4.3 KB)
RBC_q0_new.log (7.8 KB)
RBC_q0_new.mod (11.6 KB)
RBC_q0_params.mat (205 Bytes)
RBC_q0_results.mat (494.5 KB)

  1. The Blanchard-Kahn violation suggests a timing error or other mistake in the code.
  2. The files you mention will be generated when you run estimation with mode finding and mh_replic bigger than the current 0.

Thank you for the advice, Professor! It is very helpful!

Best,
Yan