Dear all，

When I use output and consumption data, I can produce results. But when using output, consumption and investment data, it shows ‘The forecast error variance in the multivariate Kalman filter became singular’. Why is there such a mistake? Hope someone helps me find out the mistake, thank you in advance.

data.xls (33 KB)

lowrisk.mod (5.6 KB)

Error using initial_estimation_checks (line 143)

initial_estimation_checks:: The forecast error variance in the multivariate Kalman filter became singular.

Error in initial_estimation_checks (line 143)

error(‘initial_estimation_checks:: The forecast error variance in the multivariate Kalman filter became singular.’)

Error in dynare_estimation_1 (line 165)

oo_ = initial_estimation_checks(objective_function,xparam1,dataset_,dataset_info,M_,estim_params_,options_,bayestopt_,bounds,oo_);

Error in dynare_estimation (line 105)

dynare_estimation_1(var_list,dname);

Error in lowrisk (line 362)

oo_recursive_=dynare_estimation(var_list_);

Error in dynare (line 235)

evalin(‘base’,fname) ;