Dear Dynare community,

I am experiencing a problem with OccBin estimation. I estimate a small model with an occasionally binding ELB constraint. I use piecewise Kalman filter. When I run the estimation routine, I get the following error message:

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

Error using print_info

Piecewise linear Kalman filter: There was a problem in obtaining the likelihood.Error in initial_estimation_checks (line 291)

print_info(info, DynareOptions.noprint, DynareOptions)Error in dynare_estimation_1 (line 159)

oo_ = initial_estimation_checks(objective_function,xparam1,dataset_,dataset_info,M_,estim_params_,options_,bayestopt_,bounds,oo_);Error in dynare_estimation (line 118)

dynare_estimation_1(var_list,dname);Error in MSZ_nooccbin.driver (line 746)

oo_recursive_=dynare_estimation(var_list_);Error in dynare (line 281)

evalin(‘base’,[fname ‘.driver’]);

However, when I try to estimate the same model without Occbin, everything works fine. I am on Dynare 5.5, Matlab 2023b running natively on Apple Silicon (Sonoma 14.0). The contents of the mod file are sensitive – I can share them privately.

Most likely, it is not a stochastic singularity problem, as I have more shocks than observables. I also think that I handle parameter dependence correctly, so it should not be an issue.

Thank you for your help!

Ivan