Hi,
I am trying to estimate the RBC model in section 2.3 of this article homepages.nyu.edu/~ts43/research/AP_tom16.pdf. I made a few changes: I added an equation for y=exp(z)k^alphalab^(1-alpha) and I am estimating all 7 of the parameters. I am using detrended GDP data I got from some other Dynare example. I keep getting the following error:
Improvement on iteration 24 = 0.000002033
f at the beginning of new iteration, -633.1605667791
Predicted improvement: 13.269746463
lambda = 1; f = -620.1507553
SOLVE: Iteration 2
Spurious convergence.
0.8172
0.5460
0.9049
-1.4046
0
lambda = 0.33333; f = -630.9595435
lambda = 0.11111; f = -633.1907086
I kill it, because I have no idea what Spurious convergence means, but it seems that the results will be no good. If I let it run, the mode finding algorithm usually crashes with the error:
??? Error using ==> chol
Matrix must be positive definite.
Error in ==> metropolis_hastings_initialization at 52
d = chol(vv);
Error in ==> random_walk_metropolis_hastings at 43
ix2, ilogpo2, ModelName, MhDirectoryName, fblck, fline, npar, nblck, nruns, NewFile, MAX_nruns, d ] = …
Error in ==> dynare_estimation_1 at 942
feval(options_.posterior_sampling_method,‘DsgeLikelihood’,options_.proposal_distribution,xparam1,invhess,bounds,gend,data);
Error in ==> dynare_estimation at 62
dynare_estimation_1(var_list,varargin{:});
Error in ==> myrbc2 at 140
dynare_estimation(var_list_);
Error in ==> dynare at 102
evalin(‘base’,fname) ;