I was estimating a NK model using version 4.1.1 and got the message that led to fixing the bug in the Kalman filter code (Bug in kalman_filter.m).
Now I am running version 4.1.2 and the bug seems to be fixed, however now I get the following error message:
dynare base_est.mod
Configuring Dynare …
[mex] Generalized QZ.
[mex] Sylvester equation solution.
[mex] Kronecker products.
[mex] Sparse kronecker products.
[mex] Bytecode evaluation.
[mex] k-order perturbation solver.
[mex] k-order solution simulation.
Starting Dynare (version 4.1.2).
Starting preprocessing of the model file …
Found 10 equation(s).
Evaluating expressions…done
Computing static model derivatives:
- order 1
Computing dynamic model derivatives: - order 1
- order 2
Processing outputs …done
Preprocessing completed.
Starting MATLAB/Octave computing.
STEADY-STATE RESULTS:
ygr 0.4
infl 7
int 9.64957
y 0
yst 0
r 0
p 0
u 0
g 0
v 0
EIGENVALUES:
Modulus Real Imaginary
0 0 0
0.1863 0.1863 0
0.2 0.2 0
0.6 0.6 0
0.8 0.8 0
1.281 1.281 0
2.1 2.1 0
Inf -Inf 0
There are 3 eigenvalue(s) larger than 1 in modulus
for 3 forward-looking variable(s)
The rank condition is verified.
You did not declare endogenous variables after the estimation command.
Loading 205 observations from qdatabaseest.xls
??? Error using ==> kalman_filter at 83
The variance of the forecast error remains singular until the end of the sample
Error in ==> DsgeLikelihood at 254
LIK = kalman_filter(T,R,Q,H,Pstar,Y,start,mf,kalman_tol,riccati_tol);
Error in ==> initial_estimation_checks at 60
[fval,cost_flag,ys,trend_coeff,info] =
DsgeLikelihood(xparam1,gend,data,data_index,number_of_observations,no_more_missing_observations);
Error in ==> dynare_estimation_1 at 334
initial_estimation_checks(xparam1,gend,data,data_index,number_of_observations,no_more_missing_observations);
Error in ==> dynare_estimation at 62
dynare_estimation_1(var_list,varargin{:});
Error in ==> base_est at 176
dynare_estimation(var_list_);
Error in ==> dynare at 132
evalin(‘base’,fname) ;
Why is that the matrix is singular?
qdatabaseest.xls (38.5 KB)
base_est.mod (1.47 KB)