I wanted to thank you for answering my post earlier his month. It worked perfectly once I followed your advice.
I am continuing to run Bayesian Estimation for my model and have run into another issue which I would appreciate some guidance on.
It seems that when I try an estimate one of the parameters in particular I generate the following error message:
"??? Error using ==> chol
Matrix must be positive definite.
Error in ==> metropolis_hastings_initialization at 52
d = chol(vv);
Error in ==> random_walk_metropolis_hastings at 43
ix2, ilogpo2, ModelName, MhDirectoryName, fblck, fline, npar, nblck, nruns, NewFile, MAX_nruns, d ]
Error in ==> dynare_estimation_1 at 940
Error in ==> dynare_estimation at 62
Error in ==> bank_model_2009_bayes_7 at 524
Error in ==> dynare at 102
I was wondering if I could get some information on what this message is relating to. For instance which matrix is being referred to? Is it the var-cov matrix used for drawing parameters from the distributon during the MH iterations? Is this something that usually happens, i.e. even though the model solves with the given value of a parameter, once you try and estimate this parameter (using the same initial value as a prior) then the Bayesian estimation can break down?
I hope my questions make sense, and any guidance on what could be causing this error would be much appreciated.