Dear All,

When I try to compute the conditional variance decomposition in Dynare 4.3.1, I get this error:

??? Error using ==> chol

Matrix must be positive definite.

Error in ==> conditional_variance_decomposition at 56

B =

StateSpaceModel.impulse_matrix*chol(StateSpaceModel.state_innovations_covariance_matrix)’;

Error in ==> display_conditional_variance_decomposition at 49

conditional_decomposition_array =

conditional_variance_decomposition(StateSpaceModel,Steps,SubsetOfVariables );

Error in ==> disp_th_moments at 79

oo_ = display_conditional_variance_decomposition(conditional_variance_steps,…

Error in ==> stoch_simul at 151

disp_th_moments(oo_.dr,var_list);

Error in ==> finalbelmi_estim at 782

info = stoch_simul(var_list_);

Error in ==> dynare at 120

evalin(‘base’,fname) ;

Could it be a bug?

Thanks