Hi Stephane,

I placed the mod file at the directory under /dynare/4.0.4/matlab.

Here is the mod file I have been running.

var y c k i l y_l w r z;

varexo e;

parameters beta psi delta alpha rho epsilon;

model;

(1/c) = beta*(1/c(+1))*(1+r(+1)-delta);*

psic/(1-l) = w;

c+i = y;

y = (k(-1)^alpha)*(exp(z)**l)^(1-alpha);*

w = y((epsilon-1)/epsilon)(1-alpha)/l;

r = y*((epsilon-1)/epsilon)*alpha/k(-1);

i = k-(1-delta)*k(-1);*

y_l = y/l;

z = rhoz(-1)+e;

end;

varobs y;

initval;

k = 9;

c = 0.76;

l = 0.3;

w = 2.07;

r = 0.03;

z = 0;

e = 0;

end;

steady;

check;

estimated_params;

alpha, beta_pdf, 0.35, 0.02;

beta, beta_pdf, 0.99, 0.002;

delta, beta_pdf, 0.025, 0.003;

psi, gamma_pdf, 1.75, 0.02;

rho, beta_pdf, 0.95, 0.02;

epsilon, gamma_pdf, 10, 0.03;

stderr e, inv_gamma_pdf, 0.01, inf;

end;

estimation(datafile=simuldataRBC,nobs=200,first_obs=500,mh_replic=2000,mh_nblocks=2,mh_drop=0.45,mh_jscale=0.;

I installed dynare v4.0.4 and ran the RBC_est.mod then got a different error messege,

Configuring Dynare …

[mex] Generalized QZ.

[m] Sylvester equation solution.

[mex] Kronecker products.

[mex] Sparse kronecker products.

Starting Dynare …

Starting preprocessing of the model file …

9 equation(s) found

Processing derivation …

Processing Order 1… done

Processing Order 2… done

Processing outputs …

Preprocessing completed.

Starting Matlab computing …

STEADY: numerical initial values incompatible with the following equations

1 2 4 5 6 7 9

??? error ==> dynare_solve in line 82

exiting …

error ==> steady_ at 69

[oo_.steady_state,check] = dynare_solve([M_.fname ‘_static’],…

error ==> steady at 52

steady_;

error ==> rbc_est at 107

steady;

error ==> dynare at 102

evalin(‘base’,fname) ;

Thanks,

Kaz