Dear DYNARE Forum members,
I have a problem running mod file for parameter estimation with DYNARE 4.5.4 & Matlab 2018a. The message I get is:
POSTERIOR KERNEL OPTIMIZATION PROBLEM!
(minus) the hessian matrix at the “mode” is not positive definite!
The same mod file works just fine with DYNARE 4.5.3 & Matlab 2017a, and DYNARE 4.5.4 & Matlab 2017a.
Would someone advise me if I need addtional parameters or options in using Matlab 2018a.
With best regards,
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Could you please try a non-stochastic mode-finder and report back.