Hi everyone,

I have a model that can be estimated using mode_compute=6, but I get very problematic mode check plots and I do not know how to tackle this problem. I have multiple problems in my plots:

- I have many red dots, this does not surprise me or worry me too much, because the solution of the steady state does not allow a big range for many parameters.
- I have plots (e.g. alppha), where the log-posterior and the log-lik kernel are not smooth continuous and importantly do not cross the vertical line indicating the estimated mode.
- I have plots (e.g. xxi), where the lines approach the vertical line from one side and may be tangent to the vertical line, but then stop. This, if I understand correctly can come from a corner solution.
- I also have plots, where there are no lines at all, but a vertical line is still visible.

I donâ€™t know what I need to do to fix these problems. Does anyone have an idea as to how to improve the plots? I attached the mod, steady state file and data file also to this post (The model in Dynare was log-linearized).

EnvironmentA.mod (7.4 KB)

EnvironmentA_steadystate.m (8.3 KB)

MyData.xlsx (10.6 KB)