Dear ,all:

I have stimulated a model very well ,but when i estimate the model using my own data I always get the following error messages:

""Loading 48 observations from wangxiang.m

Error in computing likelihood for initial parameter values

??? Error using ==> print_info at 40

Blanchard Kahn conditions are not satisfied: no stable

equilibrium

Error in ==> initial_estimation_checks at 69

print_info(info, DynareOptions.noprint)

Error in ==> dynare_estimation_1 at 147

oo_ =

initial_estimation_checks(objective_function,xparam1,dataset_,M_,estim_params_,options_,bayestopt_,oo_);

Error in ==> dynare_estimation at 70

dynare_estimation_1(var_list,dname);

Error in ==> wxx at 3734

dynare_estimation(var_list_);

Error in ==> dynare at 120

evalin(‘base’,fname) ;

“”

I know this means there is something wrong with my setting of initial parameters .I have already used the methods told by dear jpfeifer in the forums and use the same values I’ve used in the simulation of the mode. But it does not work. I guess there is also something wrong with my prior shapes of parameters and data I used.The detail prior shapes of parameters uesed by the paper are attached in the word file below.

I also attach two mod files and a data file.(wx1.mod is the simulation of the model . wx2.mod is the estimation of the model .wangxiang.m is the data file)

I have 240 observations in wangxiang.m ,but the error message shows that there is only 48 observations loading from the wangxiang.m. I’m confused about it.

Any thoughts would be much appreciated! Thanks in advance.

wangxiang.m (2.93 KB)

wx2.mod (4.02 KB)

wx1.mod (2.83 KB)

Prior Distribution.doc (23 KB)