Okay so now I understand the problem that my variable names must be same in .mod and data file. Although I still think that G_hat must be solved from the equation rather than the G constructed before. G_hat needs to be calculated from this equation:

```
G_hat = - rho_g*Y_hat - gamma_g*B_hat(-1) + u_g;
```

Even if I renamed my data for government spending as G_hat; I am unable to understand why dynare is also asking for data on shocks. As per my understanding shouldn’t dynare calculate the shocks itself by solving the model?

Now I am getting the following error:

```
Reference to non-existent field 'uhat_b'.
Error in read_variables (line 84)
dyn_tmp_01 = s.(deblank(var_names_01(dyn_i_01,:)));
Error in initialize_dataset (line 32)
rawdata = read_variables(datafile,varobs,],xls.sheet,xls.range);
Error in dynare_estimation_init (line 475)
dataset_ =
initialize_dataset(options_.datafile,options_.varobs,options_.first_obs,options_.nobs,transformation,options_.prefilter,xls);
Error in dynare_estimation_1 (line 81)
[dataset_,xparam1, hh, M_, options_, oo_, estim_params_,bayestopt_] =
dynare_estimation_init(var_list_, dname, ], M_, options_, oo_, estim_params_,
bayestopt_);
Error in dynare_estimation (line 89)
dynare_estimation_1(var_list,dname);
Error in code1a (line 430)
dynare_estimation(var_list_);
Error in dynare (line 180)
evalin('base',fname) ;
```

code1a.mod (6.76 KB)

data.txt (8.85 KB)

code1a_steadystate.m (2 KB)