estimation_data.xlsx (19.8 KB)

Hi,

I try to estimate my model using Bayesian estimation method. The problem is that when I try to add one more parameter to be estimated I get this error:

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.

Warning: The results below are most likely wrong!

The problem arises when I add, for example, habit parameter in an estimation.

Here is my .mod file.

structural_model_exp.mod (19.1 KB)