Dynare forums

Hi, I am trying to work with dynare.
it was ok when i used stoch_simul(...)
but when i used: estimation(...) it had much error
I can not find where is the problem. I need some help.Thanks

Error in computing likelihood for initial parameter values

ESTIMATION_CHECKS: There was an error in computing the likelihood for initial parameter values.
ESTIMATION_CHECKS: You should try using the calibrated version of the model as starting values. To do
ESTIMATION_CHECKS: this, add an empty estimated_params_init-block with use_calibration option immediately before the estimation
ESTIMATION_CHECKS: command (and after the estimated_params-block so that it does not get overwritten):


Error using print_info (line 98)
Likelihood is not a number (NaN) or a complex number

Error in print_info (line 98)
error('Likelihood is not a number (NaN) or a complex number');

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 lv (line 348)
dynare_estimation(var_list_);

Error in dynare (line 180)
evalin('base',fname) ;

1. Your model has a unit root. You must use the

Code: Select all

diffuse_filter

option.
2. You seem to not take parameter dependencies correctly into account. SeePfeifer(2013): "A Guide to Specifying Observation Equations for the Estimation of DSGE Models" https://sites.google.com/site/pfeiferecon/Pfeifer_2013_Observation_Equations.pdf
3. Could it be that some of your observables are scaled with 100 while others are not? This is most likely because you use not interest rates multiplied by 100. That won't work.

thank you very much!