Hi Johannes,

When using mode_compute 9 (in unstable version), after verifying the rank condition estimation stops with the error message:

[code]The rank condition is verified.

MODEL_DIAGNOSTICS: No obvious problems with this mod-file were detected.

Initial value of the log posterior (or likelihood): -42098088207105.7

Error using cmaes (line 549)

Initial search volume (SIGMA) badly conditioned

Error in dynare_minimize_objective (line 361)

[x, fval, COUNTEVAL, STOPFLAG, OUT, BESTEVER] =

cmaes(func2str(objective_function),start_par_value,H0,cmaesOptions,varargin{:});

Error in dynare_estimation_1 (line 204)

[xparam1, fval, exitflag, hh, options_, Scale, new_rat_hess_info] =

dynare_minimize_objective(objective_function,xparam1,options_.mode_compute,options_,[bounds.lb

bounds.ub],bayestopt_.name,bayestopt_,hh,dataset_,dataset_info,options_,M_,estim_params_,bayestopt_,bounds,oo_);

Error in dynare_estimation (line 105)

dynare_estimation_1(var_list,dname);

Error in oligo (line 899)

oo_recursive_=dynare_estimation(var_list_);

Error in dynare (line 223)

evalin(‘base’,fname) ;

[/code]

What sort of problem this error message may indicate? The same model works fine with mode_compute =6 if I do not use endogenous prior.

Many thanks.