I am trying to make an estimation using the MH algorithm and I was wondering if you can help as I have encountered some errors.
Based on the model of De Graeve (2008), I used data for the US economy.
Can you please help me to fix these type of errors? I have used the same calibration as in his working paper.
Here I attached the .mod file and the data used. I am very curious to make it work!
dsc1.rar (12.9 KB)
Please, can you help me? I really want to understand the mechanism and I cannot figure out how can I solve those errors.
I would really appreaciate your help!
- You are using the loglinear option. This will take the log of the data unless you use the logdata option (only available in the unstable version).
- You have 7 observables, but only 6 shocks with non-zero standard deviation. You must have at least 7, i.e. as many shocks as observables to prevent stochastic singularity.
- You priors are incompatible with the model. E.g.
i.e. the capital-labor ratio has mean 0 and can be negative. That is wrong. Make sure the model runs with calibrated values (which it currently does not due to Blanchard-Kahn violations) and then use