I built a simple DSGE model while looking at the references.

During the estimation process, an error message appeared as follows.

How do I resolve the error message below?

Attach the mod file and data.bdg_data.xlsx (8.7 KB) SDSGE_code.mod (3.8 KB)

- below error message in dynare -

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):

print_info (line 32)

One of the eigenvalues is close to 0/0 (the absolute value of numerator and denominator is smaller than 0.0000!

If you believe that the model has a unique solution you can try to reduce the value of qz_zero_threshold.

print_info (line 32)

error(message);

initial_estimation_checks (line 185)

print_info(info, DynareOptions.noprint, DynareOptions)

dynare_estimation_1 (line 164)

oo_ = initial_estimation_checks(objective_function,xparam1,dataset_,dataset_info,M_,estim_params_,options_,bayestopt_,bounds,oo_);

dynare_estimation (line 105)

dynare_estimation_1(var_list,dname);

SDSGE_code.driver (line 285)

oo_recursive_=dynare_estimation(var_list_);

dynare (line 293)

evalin(‘base’,[fname ‘.driver’]) ;