### estimation with dynare 4.3.1: possible bug

Posted:

**Wed Oct 17, 2012 4:40 pm**Dear All,

I am trying to replicate the paper "An Estimated Monetary DSGE Model with Unemployment and Staggered Nominal Wage Bargaining", by Gertler, Sala and Trigari. When I lunch the estimation everything goes very fast and smooth until the M-H kicks in. At that point I get the following error:

"??? Operands to the || and && operators must be convertible to logical scalar values.

Error in ==> random_walk_metropolis_hastings_core at 176

if (logpost > -inf) && (log(rand) < logpost-ilogpo2(b))

Error in ==> random_walk_metropolis_hastings at 124

fout = random_walk_metropolis_hastings_core(localVars, fblck, nblck, 0);

Error in ==> dynare_estimation_1 at 884

feval(options_.posterior_sampling_method,objective_function,options_.proposal_distribution,xparam1,invhess,bounds,dataset_,options_,M_,estim_params_,bayestopt_,oo_);

Error in ==> dynare_estimation at 70

dynare_estimation_1(var_list,dname);

Error in ==> trigari_estimation at 626

dynare_estimation(var_list_);

Error in ==> dynare at 120

evalin('base',fname) ;"

I lunch the estimation with the following options:

"estimation(order=1,datafile=trigari_dataUS,plot_priors=0, mh_jscale=0.25, mh_nblocks=2, mode_compute=6);"

This is how I specify the measurement equations:

"dy=100*(gammaz-1)+yt-yt(-1)+e_zt;

dc=100*(gammaz-1)+ct-ct(-1)+e_zt;

dinve=100*(gammaz-1)+it-it(-1)+e_zt;

dw=100*(gammaz-1)+wt-wt(-1)+e_zt;

labobs=nt;

pinfobs=pit;

robs=rt;"

Finally, I use the dataset of SW2007 available on the AER website.

The interesting thing is that when I use the default computation mode, dynare complains about matrix singularity and if I use version 4.3.0 it warns me about it and then the computation goes very slow.

Can someone help?

I am trying to replicate the paper "An Estimated Monetary DSGE Model with Unemployment and Staggered Nominal Wage Bargaining", by Gertler, Sala and Trigari. When I lunch the estimation everything goes very fast and smooth until the M-H kicks in. At that point I get the following error:

"??? Operands to the || and && operators must be convertible to logical scalar values.

Error in ==> random_walk_metropolis_hastings_core at 176

if (logpost > -inf) && (log(rand) < logpost-ilogpo2(b))

Error in ==> random_walk_metropolis_hastings at 124

fout = random_walk_metropolis_hastings_core(localVars, fblck, nblck, 0);

Error in ==> dynare_estimation_1 at 884

feval(options_.posterior_sampling_method,objective_function,options_.proposal_distribution,xparam1,invhess,bounds,dataset_,options_,M_,estim_params_,bayestopt_,oo_);

Error in ==> dynare_estimation at 70

dynare_estimation_1(var_list,dname);

Error in ==> trigari_estimation at 626

dynare_estimation(var_list_);

Error in ==> dynare at 120

evalin('base',fname) ;"

I lunch the estimation with the following options:

"estimation(order=1,datafile=trigari_dataUS,plot_priors=0, mh_jscale=0.25, mh_nblocks=2, mode_compute=6);"

This is how I specify the measurement equations:

"dy=100*(gammaz-1)+yt-yt(-1)+e_zt;

dc=100*(gammaz-1)+ct-ct(-1)+e_zt;

dinve=100*(gammaz-1)+it-it(-1)+e_zt;

dw=100*(gammaz-1)+wt-wt(-1)+e_zt;

labobs=nt;

pinfobs=pit;

robs=rt;"

Finally, I use the dataset of SW2007 available on the AER website.

The interesting thing is that when I use the default computation mode, dynare complains about matrix singularity and if I use version 4.3.0 it warns me about it and then the computation goes very slow.

Can someone help?