I am trying to estimate parameters for a model and facing some hardship. The .mod file runs just fine when I simulate it - it is able to find and solve for the steady state. However when I try to estimate the model it won’t work and I get an error message saying that there is no stable equilibrium.
Now I have tried using the estimated_params_init(use calibration); command after the estimated_params; block but this also generates the following error:
ERROR: liq_est.mod: line 357, col 11: syntax error, unexpected ‘(’, expecting COMMA
which is taking issue with the estimation command bracket and does not make sense to me.
I am providing the .mod file and data file and would appreciate it if someone could help.