Hi,
I encountered a problem with estimation. I am trying to estimate SOE model of Gali (2015) Chapter 8. This is my first estimation attempt so it could be a trivial issue but I will be very glad for any suggestion. I downloaded the code from Prof. Pfeifer’s GitHub page and tried to modify a bit. The code works perfectly for simulation. However, when I tried to include the estimation part I get the following message:
ESTIMATION_CHECKS: There was an error in computing the likelihood for initial parameter values.
ESTIMATION_CHECKS: If this is not a problem with the set of options (check the error message below),
ESTIMATION_CHECKS: you should try using the calibrated version of the model as starting values. To do
ESTIMATION_CHECKS: this, add an empty estimated_params_init-block with use_calibration option immediately before the estimation
ESTIMATION_CHECKS: command (and after the estimated_params-block so that it does not get overwritten):
Error using print_info (line 42)
Blanchard-Kahn conditions are not satisfied: no stable equilibrium
so I tried the mode:6
estimated_params_init(use_calibration);
end;
then the estimation process begins but acceptance ratio remains at 0.
Could somebody help me?
Thanks,
abc.zip (13.6 KB)