hi,

I’m estimating a DSGEBVAR and including dsge_prior_weight parameter suggests new versions of Dynare, however, when I use the function estimate for the model results, Dynare tells me that the initial values do not allow for the initial value of the likelihood. That is, there is a parameter that has not been initialized but Seeking with M_.param_names (find (isnan (…))) function, i can not find any uninitialized parameter. Also I am using the command estimated_params_init (use_calibration) to avoid this problem but it seems not work.

I appreciate anyone who can help me to identify the error, I have been reviewing the model but I have not found the error source. thanks for your help!. I am using matlab 2012b Dynare 4.4.2 and windows 7 professional.

Attach datafile and .mod file.

Configuring Dynare …

[mex] Generalized QZ.

[mex] Sylvester equation solution.

[mex] Kronecker products.

[mex] Sparse kronecker products.

[mex] Local state space iteration (second order).

[mex] Bytecode evaluation.

[mex] k-order perturbation solver.

[mex] k-order solution simulation.

[mex] Quasi Monte-Carlo sequence (Sobol).

[mex] Markov Switching SBVAR.

Starting Dynare (version 4.4.2).

Starting preprocessing of the model file …

Substitution of endo lags >= 2: added 1 auxiliary variables and equations.

Found 22 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.

EIGENVALUES:

Modulus Real Imaginary

```
0 -0 0
0 0 0
0 -0 0
2.376e-17 2.376e-17 0
0.2728 0.2728 0
0.5 0.5 0
0.5666 0.5666 0
0.8 0.8 0
0.8 0.8 0
0.8 0.8 0
0.8 0.8 0
0.8743 0.8743 0
0.9 0.9 0
0.9271 0.9271 0
1.052 1.052 0
1.198 1.177 0.2192
1.198 1.177 -0.2192
Inf Inf 0
Inf Inf 0
```

There are 5 eigenvalue(s) larger than 1 in modulus

for 5 forward-looking variable(s)

The rank condition is verified.

Loading 210 observations from data.m

Restricting the sample to observations 50 to 210. Using in total 161 observations.

PARAMETER INITIALIZATION: Warning, some deep parameters are not initialized. They will be

PARAMETER INITIALIZATION: initialized with the prior mean.

Loading 210 observations from data.m

Warning: Matrix is close to singular or badly scaled. Results may be inaccurate. RCOND

= 5.985251e-19.

In dsge_var_likelihood at 202

In initial_estimation_checks at 47

In dynare_estimation_1 at 179

In dynare_estimation at 89

In SOE_MonPol_ColBay at 387

In dynare at 180

Error in computing likelihood for initial parameter values

Error using print_info (line 110)

You are estimating a DSGE-VAR model, but the implied covariance matrix of the VAR’s

innovations is not positive definite!

Error in print_info (line 110)

error(‘You are estimating a DSGE-VAR model, but the implied covariance matrix

of the VAR’‘s innovations is not positive definite!’);

Error in initial_estimation_checks (line 69)

print_info(info, DynareOptions.noprint, DynareOptions)

Error in dynare_estimation_1 (line 179)

oo_ =

initial_estimation_checks(objective_function,xparam1,dataset_,M_,estim_params_,options_,bayestopt_,oo_);

Error in dynare_estimation (line 89)

dynare_estimation_1(var_list,dname);

Error in SOE_MonPol_ColBay (line 387)

dynare_estimation(var_list_);

Error in dynare (line 180)

evalin(‘base’,fname) ;

data.m (69.2 KB)

SOE_MonPol_ColBay.mod (8.33 KB)