Replicating Dynare User Guide Examples - Help!

Dynare help (legacy posts)
1
  1. I still find it hard to replicate the estimation section of the user guide example 1. The dynare gives many errors, the foremost among them is

“Error using print_info (line 74)
Impossible to find the steady state. Either the model doesn’t have a steady
state, there are an infinity of steady states, or the guess values are too far
from the solution”

  1. Secondly I really don’t understand what exactly is the right way to enter the codes while one is estimating rather than solving the model. A video tutorial on dynare specify model parameters values in the preamble, whereas the dynare user guide, chapter 5 do not assign any such values except for the values in initval block.

Either way the model just don’t work. Any help on this will be highly appreciated. Please find attached my mod file and the data file.
simuldataRBC.m (141 KB)
estimate3.mod (1005 Bytes)

2

See
Remark 2 (Using stoch_simul before Estimation)
Remark 15 (initval vs. steady_state_model vs. steadystate-file)
in
Pfeifer(2013): “A Guide to Specifying Observation Equations for the Estimation of DSGE Models” sites.google.com/site/pfeiferecon/Pfeifer_2013_Observation_Equations.pdf.
It is best you compute the steady state analytically.
Also note that the user guide is somewhat outdated by now.

3

Thank you so much sir. The document looks promising. I’ll make sure to look through it.