Small Open Economy Dynare Estimation

I am trying to run the code provided in

sites.google.com/site/mathiastr … e/research

for the following paper:

Introducing Financial Frictions and Unemployment Into A Small Open Economy Model. I cannot seem to run any of the models provided in the above link. I usually get following type of errors:

Warning: Some of the parameters have no value (Spp, mupsi, sigmab, a, phi, pibar, R, wbar, pic, psizplus, H, q, pimi, mcmi, mc, pix,
mcmx, mcx, pimx, muz, ybar, AL, sigmaL, Rk, ystar, mcmc, px, pimc, pmc, pmi, kbar, i, c, pc, pkprime, pinvest, pmx, pii, Rstar, s, rkbar,
Rf, Rnustar, x, Rx, varkappad, varkappax, varkappamx, varkappami, varkappamc, varkappaw, pitildedpi, Kd, Fd, phalo, pitildexpi, Kx, Fx,
phalox, pitildemcpi, Kmc, Fmc, phalomc, cm, pitildemipi, Kmi, Fmi, phalomi, im, pitildemxpi, Kmx, Fmx, phalomx, xm, aofu, piw, we, n,
omegabar, sigma, gamma, spread, recruitshare, kappa, eta, bu, Jw, Vw, BigQ, v, m, f, w, Jzplus, Vxzplus, Uzplus, recruiting, pitildew,
G1, G2, G3, chi0, chi1, chi2, chi3, Om1, Om2, Om3, Om4, vtilde0, vtilde1, vtilde2, vtilde3, Vzplus0, Vzplus1, Vzplus2, Vzplus3, l0, l1,
l2, l3, mupsiPercent, avg_Nash, ylessd, epscall0, epscall1, epscall2, epscall3, fcall0, fcall1, fcall2, fcall3, intensity0, intensity1,
intensity2, intensity3, mcall0, mcall1, mcall2, mcall3, a0, a1, a2, a3, gcallprime0, gcallprime1, gcallprime2, gcallprime3, fcallprime0,
fcallprime1, fcallprime2, fcallprime3, Jtildezplus0, Jtildezplus1, Jtildezplus2, Jtildezplus3, BigF, ab) when using steady. If these
parameters are not initialized in a steadystate file, Dynare may not be able to solve the model…

In test_for_deep_parameters_calibration at 46
In steady at 33
In ctw_employer_surplus at 2038
In dynare at 120
In testOpenDSGE at 25
Panic: Fsolve has a problem to terminate or other steady state calcs fail.
Panic: Fsolve has a problem to terminate or other steady state calcs fail.
Panic: Fsolve has a problem to terminate or other steady state calcs fail.
Panic: Fsolve has a problem to terminate or other steady state calcs fail.
Panic: Fsolve has a problem to terminate or other steady state calcs fail.
Panic: Fsolve has a problem to terminate or other steady state calcs fail.
Panic: Fsolve has a problem to terminate or other steady state calcs fail.
Panic: Fsolve has a problem to terminate or other steady state calcs fail.
Panic: Fsolve has a problem to terminate or other steady state calcs fail.
Panic: Fsolve has a problem to terminate or other steady state calcs fail.

Does anyone has experience with this code? I am using DYNARE 4.2.4 and the read me file for the paper suggests using DYNARE 4.1.0. Would that cause the above kind of errors? I appreciate your help.

1 Like

Those codes should also run with newer Dynare versions. It looks like you did not copy the steady state file provided by CTW to the folder with your mod-file.