Hi,everyone, I am simulating a **loglinearized **model, which is based on Fernandeze benchmark model, and very like SmetsWouters(2007), I conducted bayesian estimation and faced the following problems, hope you can help me, Thanks!
dynare gov
Configuring Dynare …
[mex] Generalized QZ.
[mex] Sylvester equation solution.
[mex] Kronecker products.
[mex] Sparse kronecker products.
[mex] Bytecode evaluation.
[mex] korder perturbation solver.
[mex] korder solution simulation.
Starting Dynare (version 4.2.1).
Starting preprocessing of the model file …
Found 26 equation(s).
Evaluating expressions…done
Computing static model derivatives:
 order 1
Computing dynamic model derivatives:  order 1
Processing outputs …done
Preprocessing completed.
Starting MATLAB/Octave computing.
Residuals of the static equations:
Equation number 1 : 0
Equation number 2 : 0
Equation number 3 : 0
Equation number 4 : 0
Equation number 5 : 0
Equation number 6 : 0
Equation number 7 : 0
Equation number 8 : 0
Equation number 9 : 0
Equation number 10 : 0
Equation number 11 : 0
Equation number 12 : 0
Equation number 13 : 0
Equation number 14 : 0
Equation number 15 : 0
Equation number 16 : 0
Equation number 17 : 0
Equation number 18 : 0
Equation number 19 : 0
Equation number 20 : 0
Equation number 21 : 0
Equation number 22 : 0
Equation number 23 : 0
Equation number 24 : 0
Equation number 25 : 0
Equation number 26 : 1.012
STEADYSTATE RESULTS:
pie 0
w 0
g1 0
g2 0
k 0
R 0
y 0
c 0
vp 0
q 0
x 0
lam 0
r 0
pie_st 0
l 0
mc 0
d 0
phi 0
mu 0
A 0
ksi 0
y_obs 0
c_obs 0
x_obs 0
w_obs 0
pie_obs 1.012
??? Error using ==> eig
Input to EIG must not contain NaN or Inf.
Error in ==> dr1 at 369
dr.eigval = eig(e,d);
Error in ==> resol at 147
[dr,info,M_,options_,oo_] = dr1(dr,check_flag,M_,options_,oo_);
Error in ==> check at 46
[dr, info] = resol(oo_.steady_state,1);
Error in ==> gov at 240
check;
Error in ==> dynare at 132
evalin(‘base’,fname) ;
My questions are:

what should i do with "Input to EIG must not contain NaN or Inf”? i know it is the problem of jacobian, but how to check where the model is wrong?

how to write the observationequation for inflation? **All variables in the model is stationary, and the model is log linearized. *the way i deal with date is like smet(2007). For inflation, I take logs, seasonally adjusted, and multiply by 100, but i did not take differences. then i tried the several ways: (1)pie_obs=pie_bar(1+pie); (2)pie_obs=pie_bar+pie; (3) pie_obs= pie+ log(pie_bar); These are not ok(inequalities like the red mark above); However, when I tried: (4) pie_obs=pie, equality occurs. why? i think the 1st should be right.
Hope you can help me! Many Thanks!
Qingyin Ma
gov_data.m (4.99 KB)
gov.mod (4.8 KB)