Dear Jpfeifer,
Thanks for your reply. My code runs very well and get good identification and convergence results of Bayesian estimation. However, when I use the forecast command, dynare shows the error message:
[code]Log data density [Laplace approximation] is -963.453472.
Error using chol
Matrix must be positive definite.
Error in metropolis_hastings_initialization (line 68)
d = chol(vv);
Error in random_walk_metropolis_hastings (line 62)
ix2, ilogpo2, ModelName, MetropolisFolder, fblck, fline, npar, nblck, nruns, NewFile,
MAX_nruns, d ] = …
Error in dynare_estimation_1 (line 782)
feval(options_.posterior_sampling_method,objective_function,options_.proposal_distribution,xparam1,invhess,bounds,dataset_,options_,M_,estim_params_,bayestopt_,oo_);
Error in dynare_estimation (line 77)
dynare_estimation_1(var_list,M_.dname);
Error in code (line 975)
dynare_estimation(var_list_);
Error in dynare (line 180)
evalin(‘base’,fname) ;[/code]
my estimation block is:
What is the problem and how to fix it?
Regards,