I am trying to estimate a RBC for emerging market economies model with a bayesian estimation without success. I was get the following error message when try to run the model on dynare.

??? Error using ==> chol

Matrix must be positive definite.

Error in ==> metropolis_hastings_initialization at 68

d = chol(vv);

Error in ==> random_walk_metropolis_hastings at 69

ix2, ilogpo2, ModelName, MhDirectoryName, fblck, fline, npar, nblck, nruns,

NewFile, MAX_nruns, d ] = …

Error in ==> dynare_estimation_1 at 931

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 ==> fin_bayes1 at 283

dynare_estimation(var_list_);

Error in ==> dynare at 120

evalin(‘base’,fname) ;

So I will be greatful if someone can help. The dynare cmd file

nwgdata.xls (26.5 KB)

fin_bayes1.mod (3.13 KB)