I am doing DSGE model in Dynare for my dissertation, and I am stuck with some problems that I am trying to figure why for few days. But I still can’t fix it.
Two of my main questions are: 1.I got this: '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 optimisation routine.’
2. In the RESULTS FROM POSTERIOR ESTIMATION section, the standard errors I got are 'NaN' And I don't understand why there are no standard errors. RESULTS FROM POSTERIOR ESTIMATION
prior mean mode s.d. prior pstdev
rho_p 0.500 0.5999 NaN beta 0.2000
rho_m 0.500 0.5999 NaN beta 0.2000
rho_x 0.500 0.7781 NaN beta 0.2000
I attached the mod file and my data.
Thank you so much.
myd.zip (7.55 KB)