- 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”

- 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)