I am trying to the DSGE model of Cho and Moreno (JMCB), provided by Philip Liu, on euro area data. However, Dynare is giving the following 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 1023
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 ==> moreno_mcmc at 164
dynare_estimation(var_list_);
Error in ==> dynare at 125
evalin(‘base’,fname) ;
I am attaching the .mod file and the data. Any help?
datankm.m (2.32 KB)
moreno_mcmc.mod (1.38 KB)