Hello! I was replicating the paper of Peter Ireland (2004), ‘Technology shocks in the new Keynesian model’.
I have several problems when running the following mod file to do ML estimation.
- After running the results there is some thing wrong like this.
[quote]POSTERIOR KERNEL OPTIMIZATION PROBLEM!
(minus) the hessian matrix at the “mode” is not positive definite!
=> posterior variance of the estimated parameters are not positive.
You should try to change the initial values of the parameters using
the estimated_params_init block, or use another optimization routine.
Warning: The results below are most likely wrong! [/quote]
I have tried different mode_compute 3,4,8,9. And model identification shows that all parameters are identified.But the problem was still there.
2.When I do sto_simul after estimation, there was a warning like this:
[quote]Warning: Some of the parameters have no value (sig_a, sig_e, sig_z, sig_r)
when using stoch_simul. If these parameters are not initialized in a
steadystate file, Dynare may not be able to solve the model… [/quote]
so how to do simulation in this case?
- The shock_decomposition cannot be carried out also. I wonder what i did wrong.