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_ =

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

Error in dynare_estimation (line 89)

dynare_estimation_1(var_list,dname);

Error in chorinho_table (line 576)

dynare_estimation(var_list_);

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

** eesp.fgv.br/sites/eesp.fgv.br/fi … 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)