Hi!

Im having trouble im my attempt to replicate an estimation (this is my first try ever!). I get this error message:

Log data density [Laplace approximation] is NaN.

Error using chol

Matrix must be positive definite with real diagonal.

Error in posterior_sampler_initialization (line 84)

d = chol(vv);

Error in posterior_sampler (line 60)

posterior_sampler_initialization(TargetFun, xparam1, vv,

mh_bounds,dataset_,dataset_info,options_,M_,estim_params_,bayestopt_,oo_);

Error in dynare_estimation_1 (line 465)

posterior_sampler(objective_function,posterior_sampler_options.proposal_distribution,xparam1,posterior_sampler_options,bounds,dataset_,dataset_info,options_,M_,estim_params_,bayestopt_,oo_);

Error in dynare_estimation (line 105)

dynare_estimation_1(var_list,dname);

Error in curdia.driver (line 327)

oo_recursive_=dynare_estimation(var_list_);

Error in dynare (line 293)

evalin(‘base’,[fname ‘.driver’]) ;

I know its a problem in the MH optimization algoritm, but i have no idea how to solve it and what is the source of the problem.

Hope someone can help me.

Thanks!

Cúrdia et. al (2014).rar (163.6 KB)