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,