Hi everyone!
I am trying to simulate my model using extended path command, but I am stuck in finding the result since dynare (4.4.3) does not accept to run. Please your help will be very important and useful for me. The below error appears with dynare 4.4.3. Please find my model in attached file. Note that the model works perfectly with simul and stoch_simul commands.
There are 14 eigenvalue(s) larger than 1 in modulus
for 14 forward-looking variable(s)
The rank condition is verified.
??? Error using ==> chol
Matrix must be positive definite.
Error in ==> setup_stochastic_perfect_foresight_model_solver at 23
pfm.Omega = chol(pfm.Sigma,‘upper’); % Sigma = Omega’*Omega
Error in ==> extended_path at 39
pfm = setup_stochastic_perfect_foresight_model_solver(M_,options_,oo_,‘Tensor-Gaussian-Quadrature’);
Error in ==> ssmodelAI at 687
extended_path(], 100);
Error in ==> dynare at 180
evalin(‘base’,fname) ;
EP_example.zip (238 KB)