In my new mod file which is very different from my last mode file, please refer to the attachment of my new mod file. i run dynare and chose the estimation compute_mode=6, dynare begins to calculate for a while, but ends up with the following messages:
Error using chol
Matrix must be positive definite.
Error in gmhmaxlik (line 197)
dd = transpose(chol(CovJump));
Error in dynare_estimation_1 (line 437)
[xparam1,PostVar,Scale,PostMean] = …
Error in dynare_estimation (line 89)
Error in Thesis32 (line 769)
Error in dynare (line 180)
I have searched all the relevant answers in Dynare forum, and try to follow these advices, however, i still cannot run my model without the above errors, could you please give me some advicnes? i have applied ‘model_diagnostics(M_,options_,oo_)’, and the result indicates collinearity among the equations which specify the evolution of exogenous shocks, is it because i have too many exogenous shocks equations?
Could anyone give me some help?
in my uni, no one can help me with this, I really need some kind people who can give me some guidance.
Thank you very much!
Thesis32 - Copy.mod (29.2 KB)