Dear all,
I am trying to repeat the procedure used by Del Negro and Schorfheide, using a different DSGE model (the DSGE model present in the chapter 3 of Galì’s 2008 book).
I have loglinearized the model before, so the .mod file contains the model loglinearized.
I use the same model to simulate the varibles. I attach the two files, please someone could check what could be wrong?
The errors Matlab gives to me are:

??? Error using ==> mtimes
Inner matrix dimensions must agree.

Error in ==> DsgeVarLikelihood at 138
tmp0 =
I compute the variance-covariance matrix

Error in ==> csminit at 126
f = feval(fcn,dxtest,varargin{:});

Error in ==> csminwel1 at 101
[f1 x1 fc retcode1] = csminit(fcn,x,f,g,badg,H,varargin{:});

Error in ==> dynare_estimation_1 at 209
[fval,xparam1,grad,hessian_csminwel,itct,fcount,retcodehat] = …

Error in ==> dynare_estimation at 62

Error in ==> galiest at 168

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

Many thanks.
galiultimo.mod (1.05 KB)
galiest.mod (2.02 KB)

Problem is that BK conditions are not fulfilled for the initial condition of the parameters (considered for the optimization of the posterior kernel). Also parameter rhoshould not be estimated because this is not consistent with calibrated parameter neta.