Hello Professor,

I am working on estimating NK model with 16 secotrs.

I am trying to estimate the Calvo parameters with other parameters.

(previously, I just assigned values from the literautre for the Calvo parameters)

With mode_compute=5, I think I got decent mode, which you can check from attached file.

But the problem is the log data density if -inf (from Harmonic mean estimator), and I got following messages:

Estimation::marginal density: There’s probably a problem with the modified harmonic mean estimator.

Besides, the log density from the Laplace approximation is fine as:

Log data density [Laplace approximation] is 9397.546339.

So my question is whether the -inf log data density of Harmonic mean estimator is problem and how can I fix it.

Is it a problem of low draw? I only tried the draw of 30,000 so I’m trying more, but not sure more draws will fix this problem.

I attached mode check and prior and posterior plots, and also my mod file.

Thank you for your help.

Plots.pdf (438.2 KB)