The steady state contains NaN or Inf - Estimation Error

Good Afternoon,

I’m getting the following error messages while trying to estimate the attached DSGE model (Chorinho**), for the Brazilian Economy:

Error in computing likelihood for initial parameter values
Error using print_info (line 80)
The steady state contains NaN or Inf
Error in print_info (line 80)
error(‘The steady state contains NaN or Inf’)
Error in initial_estimation_checks (line 69)
print_info(info, DynareOptions.noprint, DynareOptions)
Error in dynare_estimation_1 (line 179)
oo_ =
Error in dynare_estimation (line 89)
Error in chorinho_table (line 576)
Error in dynare (line 180)
evalin(‘base’,fname) ;

By the way, this is the first time I have an error on Dynare. So I’m pretty lost on debugging it. Also, this is the first time that I try to use non-stationary variables to infer the model.

I suppose I may be missing something, but after days debugging the attached code, I can’t find it. Hope someone could help me out.
I also tried to contact the Author to provide the original code, but I had no success on it.

I would be very glad to get any help or hint you can give me.

Best Regards,

Fernando Fernandes

** … rtigo2.pdf (PDF File of the Original Model, which I’m trying to implement over Dynare)
chorinho_data.xls (45 KB)
chorinho_table.mod (347 Bytes)
chorinho_model_defs.txt (2.48 KB)
chorinho_estimation_defs.txt (2.26 KB)
chorinho_defs.mod (681 Bytes)

Before moving to estimation, make sure a calibrated version of the model solves. See
Remark 2 (Using stoch_simul before Estimation)
Remark 15 (initval vs. steady_state_model vs. steadystate-file)
Pfeifer (2013): “A Guide to Specifying Observation Equations for the Estimation of DSGE Models”

Thank you for your hint.
I’ll try to run a first version of the model, using the calibrated parameters presented on the paper, and see if the model solves, in order to check if everything is okay.

Then, I will let you know of anything :slight_smile:

Kind Regards,


Hi Fernando, did you get to run the code?