How to adjust the non-zero static equation in the DSGE model?

Copy5modelcode_indexend1.m (2.1 KB) Copy5modelcodeend1.mod (6.8 KB)

  1. You should use a steady state file instead of saving and loading parameters.
  2. The residuals mean that either your model equations or the steady state computations are wrong, because the two are inconsistent. So you need to find out where the problem comes from.

Dear Professor J.Pfeifer,

Thanks for your reply! Your words are so helpful.

Dear Professor J.Pfeifer,

Thank you so much for your help. I am pretty grateful for having taken up your time for my troubles.
I am a beginner in the DSGE model,I still don’t know how to adjust the non-zero static equation, and I have some troubles in Bayesian estimation. Can you help me solve these problems?Looking forward to your reply, thank you in advance!

Sincerely yours,
bdata.xlsx (12.2 KB) Copy5modelcodeend2.mod (8.0 KB)

  1. I cannot help you with the steady state. It’s your model and you need to know whether the model or the steady state are incorrectly implemented.
  2. You should try mode_compute=5 and adjust your prior. As Dynare states

Prior distribution for parameter rho_a has unbounded density!
Prior distribution for parameter rho_d has unbounded density!
Prior distribution for parameter rho_sigma has unbounded density!