Problem finding mode


I am estimating a version of Hansen’s rbc model with staggered pricing and investment adjustment costs. When adjustment costs are added to the model, the fit improves, (minus log posterior is lower with adjustment costs than without). Nonetheless, the optimization routine does not find the mode for the Calvo parameter and the persistence parameter of the monetary shock. I have tried using different optimization routines but it won’t work. I have attached the files and would appreciate your feedback.

nk_adj.mod (2.9 KB) fsdat_simul.m (4.4 KB)

What do you mean with

From what I can see the mode_check-plots look good and the Hessian is positive definite.