# Problem estimating Sargent example

Hi everyone,

I was trying to run this example from Practicing Dynare paper(can be downloaded from Sargent webpage ) and I have got a n error that I don’t know how to solve (since I am recently using Dynare). Someone could help me please? this is the error message:

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 4.2.5).
Starting preprocessing of the model file …
WARNING: TwoCountryEst.mod:1.1-12: periods: this command is now deprecated and may be removed in a future version of Dynare. Please use the “periods” option of the “simul” command instead.
Found 8 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.

c1 0.823947
c2 0.823947
k1 2.89526
k2 2.89526
a1 0
a2 0
y1 1.15811
y2 1.15811

You did not declare endogenous variables after the estimation command.
This version of Dynare cannot estimate non linearized models!
Set “order” equal to 1.

??? Error using ==> inverse_gamma_specification at 121
inverse_gamma_specification:: Failed in solving for the hyperparameters!

Error in ==> set_prior at 224
[bayestopt_.p6(k(i)),bayestopt_.p7(k(i))] = …

Error in ==> dynare_estimation_init at 124
[xparam1,estim_params_,bayestopt_,lb,ub,M_] = set_prior(estim_params_,M_,options_);

Error in ==> dynare_estimation_1 at 37
[data,rawdata,xparam1] = dynare_estimation_init(var_list_);

Error in ==> dynare_estimation at 62
dynare_estimation_1(var_list,varargin{:});

Error in ==> TwoCountryEst at 150
dynare_estimation(var_list_);

Error in ==> dynare at 120
evalin(‘base’,fname) ;
TwocountryEst.mod (1016 Bytes)