Steady state issue while I am moment matching (Calibration

Stochastic simulations
1

Hello Professor,

I am trying to calibrate my model parameters by matching my empirical moments to simulated model moments.

I have coded up a separate matlab file to perform this, but it the iteration stops after a few loops with the impossible to find the steady state error

“Impossible to find the steady state (the sum of squared residuals of the static equations is 0.0000).”

What could be the problem? I’ll include both the calibration file and mode file to this post. Thank you!

Best,
Jeremy
calibration.m (1.1 KB)
model4.mod (2.0 KB)

2

Your mod-file is not suited for that type of task. You only set initial values via initval for the initial parameterization. Whenever you change parameters a lot, you should provide an analytical steady state.