by SébastienVillemot » Mon Feb 13, 2012 4:56 pm
I get a crash when I run your MOD file, looks like the maximization ends up on a singular point. Similarly, if I set mode_compute=4, then the maximization convergences, but the result seems spurious (non definite-positive hessian at the maximum).
I would suggest to modify your initial values, so that you have a better chance of finding a non-spurious result. If that does not help, I guess the only choice is to move to Bayesian estimation, and assign priors...
Sébastien Villemot
Economist at OFCE – Sciences Po