Hi jpfeifer ,
Just seeing your response now. I agree. It doesn’t seem sensible to simple delete a line of code. I had a look at the functioning version of the SW model for Dynare 4 which you are referring to. Unfortunately, I seem to be getting an error when I run it:
Starting Dynare (version 4.2.5).
Starting preprocessing of the model file …
ERROR: usmodel_shock_decomp.mod:186.21-26: syntax error, unexpected NAME, expecting PARAMETER_SET
??? Error using ==> dynare at 114
DYNARE: preprocessing failed
When I remove the line at 186 relating to the shock composition, I then get this error:
You did not declare endogenous variables after the estimation command.
This version of Dynare cannot estimate non linearized models!
Set “order” equal to 1.
??? Error using ==> inverse_gamma_specification at 121
inverse_gamma_specification:: Failed in solving for the hyperparameters!
Error in ==> set_prior at 224
[bayestopt_.p6(k(i)),bayestopt_.p7(k(i))] = …
Error in ==> dynare_estimation_init at 124
[xparam1,estim_params_,bayestopt_,lb,ub,M_] = set_prior(estim_params_,M_,options_);
Error in ==> dynare_estimation_1 at 37
[data,rawdata,xparam1] = dynare_estimation_init(var_list_);
Error in ==> dynare_estimation at 62
Error in ==> usmodel_shock_decomp at 412
Error in ==> dynare at 120