Does anybody know how to impose a negative shock, say a decrease in government spending, in a stochastic simulation? Thanks!
I tried: var g = -0.1. But there seems to be some problem with the cholesky decomposition.
??? Error using ==> chol
Matrix must be positive definite.
Error in ==> th_autocovariances at 142
cs = chol(SS)’;
Error in ==> disp_th_moments at 37
[oo_.gamma_y,stationary_vars] = th_autocovariances(dr,ivar,M_,options_);
Error in ==> stoch_simul at 134
Error in ==> model4a at 323
info = stoch_simul(var_list_);
Error in ==> dynare at 120