Problem of estimation (settin Estimated_params_init)

Estimation ML/Bayesian estimation
1

Dear Professor,
I posted an issue about the estimation which does not run though the stoch_simul runs properly. I tried the command option_.debug to find out theproblem with the code. the outcome from the debug option is as follows:
Error in computing likelihood for initial parameter values

ESTIMATION_CHECKS: There was an error in computing the likelihood for initial parameter values.
ESTIMATION_CHECKS: If this is not a problem with the setting of options (check the error message below),
ESTIMATION_CHECKS: you should try using the calibrated version of the model as starting values. To do
ESTIMATION_CHECKS: this, add an empty estimated_params_init-block with use_calibration option immediately before the estimation
ESTIMATION_CHECKS: command (and after the estimated_params-block so that it does not get overwritten):
I don’t know how to set the command “Estimated_params_init” in the code to solve the problem. I have read the Dynare manual section on the command but the content seems scanty and provide few details about it. I tried the diffuse filter command using lik_init=3 as recommanded in the manual but no success.
Could you provide me with more hint?
Thanks

2

Please provide the file

3

Dear professor,
See the code attached as well as the data file. Mcode.mod (6.9 KB)
Data.xlsx (24.7 KB)
Thanks

4

You did not post the full error message above. I get an error related to your use of xls_range, which must be from B1, not B2.

5

Dear Professor,
I think the range of data is properly set in my code according to the Excel spread sheet I have on my computer. I retrieved the sheet and the range which I pasted in the new Excel file to attach to my post.
Regarding the full error message, I ran the code again and here are the contents of the error message:

EIGENVALUES:
Modulus Real Imaginary

           0                0                0
       0.374            0.374                0
         0.5              0.5                0
      0.5794           0.5794                0
         0.7              0.7                0
      0.7377           0.7377                0
         0.8              0.8                0
         0.8              0.8                0
      0.8828           0.8828                0
       1.248            1.248                0
       1.302            1.302                0
       1.713            1.713                0
         Inf             -Inf                0

There are 4 eigenvalue(s) larger than 1 in modulus
for 4 forward-looking variable(s)

The rank condition is verified.

MODEL_DIAGNOSTICS: No obvious problems with this mod-file were detected.

Your mode file contains estimates for 23 parameters, while you are attempting to estimate only 20 parameters:
→ Parameter theta_f is not estimated according to the current mod file.
→ Parameter theta_h is not estimated according to the current mod file.

Error in computing likelihood for initial parameter values

ESTIMATION_CHECKS: There was an error in computing the likelihood for initial parameter values.
ESTIMATION_CHECKS: If this is not a problem with the setting of options (check the error message below),
ESTIMATION_CHECKS: you should try using the calibrated version of the model as starting values. To do
ESTIMATION_CHECKS: this, add an empty estimated_params_init-block with use_calibration option immediately before the estimation
ESTIMATION_CHECKS: command (and after the estimated_params-block so that it does not get overwritten):

Error using print_info (line 45)
Blanchard Kahn conditions are not satisfied: indeterminacy

Error in print_info (line 45)
error([‘Blanchard Kahn conditions are not satisfied:’ …

Error in initial_estimation_checks (line 175)
print_info(info, DynareOptions.noprint, DynareOptions)

Error in dynare_estimation_1 (line 165)
oo_ =
initial_estimation_checks(objective_function,xparam1,dataset_,dataset_info,M_,estim_params_,options_,bayestopt_,bounds,oo_);

Error in dynare_estimation (line 105)
dynare_estimation_1(var_list,dname);

Error in guinea0 (line 333)
oo_recursive_=dynare_estimation(var_list_);

Error in dynare (line 235)
evalin(‘base’,fname) ;

6

You are trying to use a mode-file from a different estimation that used other parameters. That can explain the error message. You may need to start from scratch with the mode-finding.