So when I tried to estmate parameters, I got the error messages like this:
Initial value(s) of gay are outside parameter bounds. Potentially, you should set prior_trunc=0. If you used the mode_file-option, check whether your mode-file is consistent with the priors.
Then I added the option prior_trunc=0 to the estimate command and problem solved.
I want to know that will this command influence my estimated results?
If it does, how can I solve this problem? Should I change the initial value of parameters to be estimated?
Also I want to know if initial value of a parameter comes from posteriori mean of other papers.
Thanks!
This is not a problem per se. But it indicates that your declared prior considers the initial parameter value as extremely unlikely. That may indicate your prior is way too tight.
Thank you professor！ But today I run into another problem:
You did not declare endogenous variables after the estimation/calib_smoother command.
Cannot use parameter values from calibration as they violate the prior bounds.Error using dynare_estimation_init
Error using check_prior_bounds
Too many input arguments.
Error in dynare_estimation_1 (line 110)
dynare_estimation_init(var_list_, dname, , M_, options_, oo_, estim_params_, bayestopt_);
Error in dynare_estimation (line 118)
dynare_estimation_1(var_list,dname);
Error in tech_estimate.driver (line 481)
oo_recursive_=dynare_estimation(var_list_);
Error in dynare (line 278)
evalin(‘base’,[fname ‘.driver’]);
I actually finished the estimation with the same codes yesterday but it won’t work now.
Should I reinstall my Dynare ? Because I tried other people’s dynare program and I got the same error message. I may unintentionally change the check_prior_bounds matlab code in the dynare file. I remembered I withdraw the changes.