I am new to DSGE estimation. I am trying to replicate “Preferred habitat and the term structure of interest rates in DSGE models” paper by Celso J. Costa. Code runs smoothly up to identification part but it fails for the estimation.
I attach both mod file and the data file. Kindly suggest me how to proceed with the files for estimation. term_struc.zip (25.7 KB)
There is a myriad of issues. I fixed some of them in the attached file. Now the issue is that there are two variables with the same name in the Excel file. term_struc_1.mod (8.6 KB) term_struc_data1.xlsx (24.1 KB)
Dear Prof, thanks a lot for your reply and fixing the errors.
Yes, I also noticed it later. The second variable named I is actually inflation (PI). I have changed it in the attached data file.
Kindly see if it can be fixed now.