Dynare forums

Dear all,

I'm new in Bayesian estimation. I'm trying to make a simple example supported on the example of the Guide. However, (I have attached a mod file ) show the priors and then displays the following error:

Error in ==> kalman_filter at 78
notsteady = max(max(abs(K-oldK))) > riccati_tol;

Error in ==> DsgeLikelihood at 254
LIK = kalman_filter(T,R,Q,H,Pstar,Y,start,mf,kalman_tol,riccati_tol);

Error in ==> initial_estimation_checks at 60
[fval,cost_flag,ys,trend_coeff,info] =
DsgeLikelihood(xparam1,gend,data,data_index,number_of_observations,no_more_missing_observations);

Error in ==> dynare_estimation_1 at 334
initial_estimation_checks(xparam1,gend,data,data_index,number_of_observations,no_more_missing_observations);

Error in ==> dynare_estimation at 62
dynare_estimation_1(var_list,varargin{:});

Error in ==> Ulighbay at 134
dynare_estimation(var_list_);

Error in ==> dynare at 132
evalin('base',fname) ;


psd. I saw the example margaretchang but not is same.

help me,
colombiandsge

You forgot to set the variance of e1. Due to it being initialized to 0, your model is stochastically singular.

jpfeifer wrote:You forgot to set the variance of e1. Due to it being initialized to 0, your model is stochastically singular.

It´s big mistake. Thank you jpfeifer .

colombiandsge

I have read the bullet points and i completely agree with you. Thank you for sharing your thoughts. Your article shows tells me you must have a lot of background in this topic.

Its really good to know me! Great site and a great topic as well i really get amazed to read this thanks. love this way!
Well i have also faced this problem.......it was very disturbing for me.....!