Restriction on the number of estimated parameters?

Dear all,

I’m wondering whether anyone here has ever encountered the similar question as me. I’m estimating a small open economy model using five macroeconomic quarterly Chilean time series. First, I fixed 10 parameters and estimated 11 parameters, including the intertemporal elasticity of substitution (crho.) Everything was fine and I got estimation results, though crho is quite low and very close to the lower bound, 0.25. Then, I fixed crho as 1.2 and removed crho from the “estimated_params” block. Run the same file. However, I got the following error message:

In an assignment A(I) = B, the number of elements in B and I must be the same.

Error in set_parameters (line 70)
M_.params(estim_params_.param_vals(:,1)) = xparam1(offset+1:end);

Error in dynare_estimation_1 (line 110)

Error in dynare_estimation (line 70)

Error in version2_FB_nlin_est (line 311)

Error in dynare (line 120)
evalin(‘base’,fname) ;

Why could the change of a single parameter from being an estimated paramter to a calibrated paramter cause errors?
Any help is deeply appreciated.

Thank you. Anita

Have you tried Dynare 4.3? Your code works on my machine.

Yes, I’m using 4.3. The code I posted previously does work but it crushes when I eliminate “crho” from estimated_params block and fix its value. However, I also found that when I fix “crho” but remove “mode_file=version2_FB_nlin_est_mode” from the estimation options, the code can run. Why does the specification of “mode_file” matter to the result?

Thanks a lot for your help.

Ok. That explains why it ran on my machine: I had to delete the mode-file part, because you did not post it.
Does this mean, you are trying to use the mode-file for the case where crho was estimated? If yes, this explains the error. The mode-file still contains the row and column belonging to crho. I guess you have to recompute the mode.

Thank you! I get it.