Replicating Adolfson(2007) bayesian open economy DSGE model

Dynare help (legacy posts)
1

I am replicating Adolfson (2007). My dynare code has a problem is that

''Error using print_info (line 98)
Likelihood is not a number (NaN) or a complex number

Error in print_info (line 98)
error(‘Likelihood is not a number (NaN) or a complex number’);

Error in initial_estimation_checks (line 69)
print_info(info, DynareOptions.noprint, DynareOptions)

Error in dynare_estimation_1 (line 179)
oo_ = initial_estimation_checks(objective_function,xparam1,dataset_,M_,estim_params_,options_,bayestopt_,oo_);

Error in dynare_estimation (line 89)
dynare_estimation_1(var_list,dname);

Error in allv (line 1697)
dynare_estimation(var_list_);

Error in dynare (line 180)
evalin(‘base’,fname) ;’’

I would like to upload all my file as below

anyone can help me
VARDATA.xls (60.5 KB)
allv_steadystate.m (3.45 KB)
allv.mod (27.7 KB)

2

Hi,
I don’t get that same error message, but rather a different one that comes from the fact that you forgot the

option

3

Dear Prof. Pfeifer

yes I got it by adding your suggested command. My model and data are not stationary yet

4

Your data should be stationary. Some of the model variables will not be stationary.

5

Dear Pfeifer

Yes sir, In this case, when I need a stationary data?

and another question is that

I have read your paper, titled: ‘‘a guide to sepcifying observation equations for the estimation of DSGE model’’

I know that I have to match the observable variables with the theoretical model variables before estimation

However, there are some complicated models with many variables. Then do we have a general solution to match the observable variables with the theoretical model variables .

In particular, I am working on the paper, titled: ‘‘Optimal monetary policy in an operational medium-sized DSGE model’’ (onlinelibrary.wiley.com/doi/10.1 … x/abstract)

Then I read their Technical appendix as the attached file. I have difficulty to derive the measurement equation systems (Section 3.1. Difference Specification, page. 28)

I mean How to derive this measurement equation system?

would you kindly give me some advices about this

Thank you so much indeed
ALLS1TechnAppx.pdf (325 KB)

6

Check time series books that describe Kalman Filter. From Hamilton to Nelson, Kim, and more recently published texts.

7

Please do not cross-post. See my answer at [Bayesian DSGE model)