Need some inputs here.
I am trying to estimate a DSGE model with financial frictions.
However, the estimates for my coefficients turn out to have sd as NaN.
Also I am getting the following errors:
“POSTERIOR KERNEL OPTIMIZATION PROBLEM!
(minus) the hessian matrix at the “mode” is not positive definite!
=> posterior variance of the estimated parameters are not positive.
You should try to change the initial values of the parameters using
the estimated_params_init block, or use another optimization routine.”
“Log data density [Laplace approximation] is NaN.”
I have tried a couple of solutions posted here on the forum however none works.
Thanks in advance.