Ireland (2004) example dynare file


Hi everyone,

I’m looking at the Ireland 2004 replication mod file from

It seems Johannes has the file set to simulation with the estimation commented out. If I comment out the stoch_simul and comment the estimation procedure back in, I can’t seem to get it to run. Specifically with errors in computing likelihood for initial parameter values. Can anyone get the estimation in this example to work?



That’s strange. I can run the example with estimation. What code exactly are you using? And which Dynare version?


I’m running the file attached here, where I’ve just deleted the plots at the end, commented out ‘stoch_simul’ and commented back in the estimation portion.

Using Dynare 4.4.3, I get the error quoted below.

Also, while I’ve got your attention, I think the current ‘Ireland_2004.mod’ file on your Github has a typo on line 172 in the estimated params block (omega isn’t specified and I couldn’t run it as is)

Ireland_2004_est.mod (6.29 KB)


The mod-file is fine as is, but you need to use the unstable version/4.5. See the disclaimer at



I’m having a similar problem with my own code. When trying to estimate my model with mode_compute=9, I’m getting the following warning

STEADY: numerical initial values or parameters incompatible with the following equations 12 17

However, just before estimation when using
everything seems ok, so I do not know how can I get this warning…

I’m using Dynare 4.5.3 in mac.



CESEstFinal.mod (7.4 KB)


The dataset is missing for running the code


Sorry. Here you have it.estimation.xls (22 KB)

The code runs perfectly with mode_compute=5 or 6.