Unusually long estimation speed

I’m running RBC_Est.mod (796 Bytes)along w/ simuldataRBC.m (140.9 KB) . I’m trying estimate the parameters using mode_compute=6 (since all mode_compute= 1 to 4 ends up with error: Error using chol Matrix must be positive definite.). However, I’ve noticed MCMC estimation is taking hours and hours to complete.

My system config;

  1. Windows 10 (64 bit)
  2. Intel 1.5GHz (2 cores) processor
  3. 4GB RAM
  4. Dynare 4.6.3
  5. Octave 5.2.0.

My questions are;

  1. Is this pace of estimation unusual for a small model like this?
  2. If I run the same files on Matlab would I experience a notable increase in performance?
  3. If I reduce the number of parameters to estimate would the process be faster?

There are various issues here:

  1. Regarding speed, your machine is slow and you are using Octave. That is a very bad combination. Matlab would be a lot faster.
  2. You are not providing an analytical steady state. That slows things down, too.
  3. Use mode_compute=5 to speed things up.
  4. Running identification will show you that your model is mostly not identified given your observables. For that reason, estimation will not work.

Thanks professor Pfeifer for the prompt reply.