Dear everyone:

please help me! My mod codes cannot works.

improvement < crit termination

smallest step still improving too slow, reversed gradient

Objective function at mode: 1127.793723

Objective function at mode: 1127.793723

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!

??? 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 58

ix2, ilogpo2, ModelName, MhDirectoryName, fblck, fline, npar, nblck,

nruns, NewFile, MAX_nruns, d ] = …

Error in ==> dynare_estimation_1 at 1106

feval(options_.posterior_sampling_method,‘DsgeLikelihood’,options_.proposal_distribution,xparam1,invhess,bounds,gend,data,…

Error in ==> dynare_estimation at 62

dynare_estimation_1(var_list,varargin{:});

Error in ==> moni at 259

dynare_estimation(var_list_);

Error in ==> dynare at 132

evalin(‘base’,fname) ;

data_Est.xls (26.5 KB)

moni.mod (2.72 KB)