Dear all,

I’m trying to estimate (Bayesian) & simulate the dsge model for my thesis. From here I need to produce output such impulse response function, variance decomposition etc. However, I’m facing the following problems/error messages which I’m unable to fix them. Could anyone help me or any help will be greatly appreciated, even if it’s just to point me in the right direction. I have attached the data & .mod files which I used in my analysis.

Error using check_prior_bounds (line 39)

Initial value(s) of pi_ss are outside parameter bounds. Potentially, you should set

prior_trunc=0. If you used the mode_file-option, check whether your mode-file is

consistent with the priors.

Error in dynare_estimation_init (line 273)

check_prior_bounds(xparam1,bounds,M_,estim_params_,options_,bayestopt_)

Error in dynare_estimation_1 (line 81)

[dataset_,xparam1, hh, M_, options_, oo_, estim_params_,bayestopt_] =

dynare_estimation_init(var_list_, dname, ], M_, options_, oo_, estim_params_,

bayestopt_);

Error in dynare_estimation (line 84)

dynare_estimation_1(var_list,dname);

Error in mydata1 (line 704)

dynare_estimation(var_list_);

Error in dynare (line 174)

evalin(‘base’,fname) ;

Thanks very much

lin

mydata1.m (30.7 KB)

mysdata1.zip (25.9 KB)

mydata1.mod (8.65 KB)