Problem in model estimation

Estimation ML/Bayesian estimation
1

Dear all,

Can anyone tell me the problems in my model? gabaix_new.mod (2.7 KB) I am getting the message “Note: 17 warning(s) encountered in the preprocessor”. us_data.mat (11.6 KB)

Best Regards
Sahil

2
  1. You can ignore the warnings. They come from you not setting the steady state values of the mean 0 variables, which is perfectly fine.
  2. The big issue here is that many of the parameters you are trying to estimate are not identified.
3

Thank you for your comments. I have improved the model but there are still some problems in the identification analysis. Could you please check? gabaix_new.mod (3.3 KB) The data file is the same.

Thank you

Regards
Sahil

4

You are trying to estimate epsilon, but it does not appear in the model at all.