Starting preprocessing of the model file ... Found 22 equation(s). Evaluating expressions...done Computing static model derivatives (order 1). Computing dynamic model derivatives (order 2). Processing outputs ... done Preprocessing completed. Residuals of the static equations: Equation number 1 : 0 : Euler equation Equation number 2 : 0 : Labor FOC Equation number 3 : 0 : Law of motion capital Equation number 4 : 0 : resource constraint Equation number 5 : 0 : production function Equation number 6 : 0 : real wage/firm FOC labor Equation number 7 : 0 : annualized real interst rate/firm FOC capital Equation number 8 : 0 : exogenous TFP process Equation number 9 : 0 : government spending process Equation number 10 : 0 : capital tax process Equation number 11 : 0 : labor tax process Equation number 12 : 0 : Definition log output Equation number 13 : 0 : Definition log capital Equation number 14 : 0 : Definition log consumption Equation number 15 : 0 : Definition log hours Equation number 16 : 0 : Definition log wage Equation number 17 : 0 : Definition log investment Equation number 18 : 0 : Output growth Equation number 19 : 0 : Consumption growth Equation number 20 : 0 : Gov. consumption growth Equation number 21 : 0 : Detrended labor taxes Equation number 22 : 0 : Detrended capital taxes STEADY-STATE RESULTS: y 1.04578 c 0.571206 k 10.8761 l 0.33 z 0 ghat 0 r 0.126923 w 2.12325 invest 0.261445 log_y 0.0447641 log_k 2.38657 log_c -0.560006 log_l -1.10866 log_w 0.752949 log_invest -1.34153 tau_n 0.207 tau_k 0.387 c_obs 0 g_obs 0 y_obs 0 tau_n_obs 0 tau_k_obs 0 EIGENVALUES: Modulus Real Imaginary 0 -0 0 2.127e-16 -2.127e-16 0 0.93 0.93 0 0.93 0.93 0 0.9694 0.9694 0 0.97 0.97 0 0.989 0.989 0 1.049 1.049 0 1.77e+16 -1.77e+16 0 7.273e+16 -7.273e+16 0 1.59e+17 -1.59e+17 0 There are 4 eigenvalue(s) larger than 1 in modulus for 4 forward-looking variable(s) The rank condition is verified. You did not declare endogenous variables after the estimation/calib_smoother command. Posterior moments will be computed for the 22 endogenous variables of your model, this can take a long time .... Choose one of the following options: [1] Consider all the endogenous variables. [2] Consider all the observed endogenous variables. [3] Stop Dynare and change the mod file. options [default is 1] = 3 PARAMETER INITIALIZATION: Some measurement errors of the calibrated model are 0 and violate the PARAMETER INITIALIZATION: inverse gamma prior. They will instead be initialized with the prior mean. Initial value of the log posterior (or likelihood): 2956.2452 Gradient norm 510045.4227 Minimum Hessian eigenvalue 23320.5827 Maximum Hessian eigenvalue 17629221232.2833 Iteration 1 Predicted improvement: 53.601607704 lambda = 1; f = -2956.2451401 lambda = 0.33333; f = -2982.5951270 lambda = 0.64439; f = -2967.4997138 lambda = 0.4339; f = -2984.5274353 Norm of dx 0.03697 Predicted improvement: 130073166592.242889404 lambda = 1; f = 32880122.5920346 lambda = 0.33333; f = 3649829.1357774 lambda = 0.11111; f = 402612.9845729 lambda = 0.037037; f = 42009.2676027 lambda = 0.012346; f = 2008.2138087 lambda = 0.0041152; f = -2414.3391008 lambda = 0.0013717; f = -2898.5359528 lambda = 0.00045725; f = -2950.1950803 lambda = 0.00015242; f = -2955.5813545 lambda = 5.0805e-05; f = -2956.1742115 lambda = 1.6935e-05; f = -2956.2382119 lambda = 5.645e-06; f = -2956.2446989 lambda = 1.8817e-06; f = -2956.2452116 lambda = 6.2723e-07; f = -2543.7843134 lambda = 2.0908e-07; f = -2893.5358737 lambda = 6.9692e-08; f = -3097.1972320 lambda = 2.3231e-08; f = -3263.4097161 lambda = 7.7435e-09; f = -3351.9938789 lambda = 2.5812e-09; f = -3287.9931063 Norm of dx 5.1005e+05 Gradient step!! Predicted improvement: 14.869448378 lambda = 1; f = -3370.9891604 Norm of dx 0.00080144 Done for param eps_z = 0.0055 Predicted improvement: 0.265329731 lambda = 1; f = -3371.2671904 Norm of dx 0.00035726 Done for param eps_g = 0.0107 Predicted improvement: 1.969970289 lambda = 1; f = -3372.6243882 Norm of dx 0.0010306 Done for param eps_tk = 0.0078 Predicted improvement: 0.015594571 lambda = 1; f = -3372.6554393 lambda = 1.9332; f = -3372.6841658 lambda = 3.7372; f = -3372.7390112 lambda = 7.2247; f = -3372.8424382 lambda = 13.967; f = -3373.0324688 lambda = 27; f = -3373.3612947 lambda = 52.196; f = -3373.8414549 lambda = 100.9; f = -3374.0940130 Norm of dx 5.856e-06 Done for param eps_tn = 0.0056 Predicted improvement: 8.290856929 lambda = 1; f = -3385.0851968 Norm of dx 0.0012473 Done for param y_obs = 0.0108 Predicted improvement: 2.886625703 lambda = 1; f = -3390.5546829 lambda = 1.9332; f = -3395.0863800 lambda = 3.7372; f = -3402.0962702 lambda = 7.2247; f = -2956.2452101 lambda = 4.8647; f = -3405.0757215 lambda = 6.1676; f = -2956.2452171 lambda = 5.3491; f = -3405.9302410 Norm of dx 0.0018889 Done for param rhoz = 0.9953 Predicted improvement: 465157662519618.187500000 lambda = 1; f = 930315325037534368497664.0000000 lambda = 0.33333; f = 103368369448236741558272.0000000 lambda = 0.11111; f = 11485374383011349397504.0000000 lambda = 0.037037; f = 1276152709181462282240.0000000 lambda = 0.012346; f = 141794745450599694336.0000000 lambda = 0.0041152; f = 15754971712064256000.0000000 lambda = 0.0013717; f = 1750552410895233280.0000000 lambda = 0.00045725; f = 194505822914018304.0000000 lambda = 0.00015242; f = 21611757928627380.0000000 lambda = 5.0805e-05; f = 2401306378868999.0000000 lambda = 1.6935e-05; f = 266811800657529.9375000 lambda = 5.645e-06; f = 29645749221261.9726563 lambda = 1.8817e-06; f = 3293969998160.2353516 lambda = 6.2723e-07; f = 365995952199.0137329 lambda = 2.0908e-07; f = 40665977071.8688431 lambda = 6.9692e-08; f = 4518360199.1089678 lambda = 2.3231e-08; f = 502011038.1469810 lambda = 7.7435e-09; f = 55767591.5253527 lambda = 2.5812e-09; f = 6190843.4328507 lambda = -6.2723e-07 lambda = -6.2723e-07; f = 365997006016.7311401 lambda = -2.0908e-07; f = 40666328343.9224930 lambda = -6.9692e-08; f = 4518477289.2747173 lambda = -2.3231e-08; f = 502050067.6834316 lambda = -7.7435e-09; f = 55780600.8520375 lambda = -2.5812e-09; f = 6195179.3562803 Norm of dx 9.6453e+11 Done for param rhog = 0.9848 Predicted improvement: 0.337345624 lambda = 1; f = -3406.6012432 lambda = 1.9332; f = -3407.2207375 lambda = 3.7372; f = -3408.3999643 lambda = 7.2247; f = -3410.6102473 lambda = 13.967; f = -3414.6172001 lambda = 27; f = -3421.2937375 lambda = 52.196; f = -3428.7378085 Norm of dx 0.00094013 Done for param rho_n = 0.9785 Predicted improvement: 0.035849770 lambda = 1; f = -3428.7895037 lambda = 1.9332; f = -3428.8029082 Norm of dx 0.001881 Done for param rho_k = 0.9286 Sequence of univariate steps!! Actual dxnorm 0.055007 FVAL -3428.8029 Improvement 472.5577 Ftol 1e-05 Htol 1e-05 Gradient norm 6701.2995 Minimum Hessian eigenvalue 7362.4741 Maximum Hessian eigenvalue 59607619.2422 Elapsed time for iteration 1.1036 s. Iteration 2 Predicted improvement: 28.824532748 lambda = 1; f = -3428.8027042 lambda = 0.33333; f = -3428.8028902 lambda = 0.11111; f = -3428.8029074 lambda = 0.037037; f = -3430.8036042 lambda = 0.071599; f = -3428.8029081 lambda = 0.048211; f = -3431.3539881 lambda = 0.061123; f = -3428.8029081 lambda = 0.053011; f = -3428.8029082 lambda = 0.048671; f = -3431.3760998 lambda = 0.05123; f = -3431.4984185 lambda = 0.053925; f = -3428.8029082 lambda = 0.052292; f = -3428.8029082 lambda = 0.051336; f = -3431.5034145 lambda = 0.051907; f = -3431.5305318 lambda = 0.052485; f = -3428.8029082 Norm of dx 0.04885 Predicted improvement: 22453707.810454942 lambda = 1; f = 40727696.3879433 lambda = 0.33333; f = 4521854.9713691 lambda = 0.11111; f = 499248.6966373 lambda = 0.037037; f = 52380.7751481 lambda = 0.012346; f = 2758.2276245 lambda = 0.0041152; f = -2745.5741827 lambda = 0.0013717; f = -3353.8361887 lambda = 0.00045725; f = -3420.5185776 lambda = 0.00015242; f = -3427.8896917 lambda = 5.0805e-05; f = -3428.7037963 lambda = 1.6935e-05; f = -3428.7926163 lambda = 5.645e-06; f = -3428.8019579 lambda = 1.8817e-06; f = -3428.8028541 lambda = 6.2723e-07; f = -3428.8029080 lambda = 2.0908e-07; f = -3428.8029081 lambda = 6.9692e-08; f = -3428.8029082 lambda = 2.3231e-08; f = -3428.8029082 lambda = 7.7435e-09; f = -3428.8029082 lambda = 2.5812e-09; f = -3428.8029082 lambda = -6.2723e-07 lambda = -6.2723e-07; f = -3367.8902439 lambda = -2.0908e-07; f = -3415.9289605 lambda = -6.9692e-08; f = -3427.5759743 lambda = -2.3231e-08; f = -3430.3988322 lambda = -7.7435e-09; f = -3431.1763833 lambda = -2.5812e-09; f = -3431.4151441 Norm of dx 6701.3 Predicted improvement: 0.021429235 lambda = 1; f = -3431.5523118 Norm of dx 5.4162e-05 Done for param eps_z = 0.0054 Predicted improvement: 0.009600015 lambda = 1; f = -3431.5620157 Norm of dx 7.294e-05 Done for param eps_g = 0.0108 Predicted improvement: 0.190593864 lambda = 1; f = -3431.7667557 Norm of dx 0.00022569 Done for param eps_tk = 0.0080 Predicted improvement: 1.157651484 lambda = 1; f = -3433.3174405 Norm of dx 0.00037342 Done for param eps_tn = 0.0052 Predicted improvement: 0.163753291 lambda = 1; f = -3433.4709400 Norm of dx 0.00031904 Done for param y_obs = 0.0104 Predicted improvement: 0.301861688 lambda = 1; f = -3428.8029069 lambda = 0.33333; f = -3428.8029080 lambda = 0.11111; f = -3428.8029081 lambda = 0.037037; f = -3428.8029082 lambda = 0.012346; f = -3428.8029082 lambda = 0.0041152; f = -3428.8029082 lambda = 0.0013717; f = -3428.8029082 lambda = 0.00045725; f = -3433.4712159 lambda = 0.00088394; f = -3433.4714734 lambda = 0.0017088; f = -3428.8029082 lambda = 0.0011506; f = -3433.4716342 lambda = 0.0014588; f = -3428.8029082 lambda = 0.0012652; f = -3433.4717033 lambda = 0.001378; f = -3428.8029082 lambda = 0.0013092; f = -3433.4717298 lambda = 0.0013501; f = -3433.4717544 lambda = 0.0013922; f = -3428.8029082 lambda = 0.0013668; f = -3428.8029082 lambda = 0.0013517; f = -3433.4717554 Norm of dx 0.0011423 Done for param rhoz = 0.9960 Predicted improvement: 11.203367769 lambda = 1; f = -3445.3021184 Norm of dx 0.025955 Done for param rhog = 0.9564 Predicted improvement: 0.261968302 lambda = 1; f = -3445.5345251 Norm of dx 0.00421 Done for param rho_n = 0.9826 Predicted improvement: 0.004648236 lambda = 1; f = -3445.5392153 Norm of dx 0.00095028 Done for param rho_k = 0.9276 Sequence of univariate steps!! Actual dxnorm 0.028681 FVAL -3445.5392 Improvement 16.7363 Ftol 1e-05 Htol 1e-05 Gradient norm 3201.6045 Minimum Hessian eigenvalue 6841.1297 Maximum Hessian eigenvalue 84918383.7806 Elapsed time for iteration 0.9942 s. Iteration 3 Predicted improvement: 4.150645759 lambda = 1; f = -3445.5392022 lambda = 0.33333; f = -3445.5392138 lambda = 0.11111; f = -3445.5392151 lambda = 0.037037; f = -3445.5392152 lambda = 0.012346; f = -3445.5392153 lambda = 0.0041152; f = -3445.5392153 lambda = 0.0013717; f = -3445.5392153 lambda = 0.00045725; f = -3445.5392153 lambda = 0.00015242; f = -3445.5392153 lambda = 5.0805e-05; f = -3445.5392153 lambda = 1.6935e-05; f = -3445.5392153 lambda = 5.645e-06; f = -3445.5392153 lambda = 1.8817e-06; f = -3445.5392153 lambda = 6.2723e-07; f = -3445.5392153 lambda = 2.0908e-07; f = -3445.5392170 lambda = 4.0418e-07; f = -3445.5392153 lambda = 2.7215e-07; f = -3445.5392175 lambda = 3.4504e-07; f = -3445.5392153 lambda = 2.9925e-07; f = -3445.5392177 lambda = 3.2594e-07; f = -3445.5392153 lambda = 3.0965e-07; f = -3445.5392178 lambda = 3.1932e-07; f = -3445.5392153 lambda = 3.1349e-07; f = -3445.5392153 lambda = 3.1003e-07; f = -3445.5392153 Norm of dx 0.030265 Predicted improvement: 0.175010210 lambda = 1; f = -3445.7049258 Norm of dx 0.00016583 Done for param eps_z = 0.0052 Predicted improvement: 0.024194765 lambda = 1; f = -3445.7294542 Norm of dx 0.00011609 Done for param eps_g = 0.0109 Predicted improvement: 0.002979942 lambda = 1; f = -3445.7324525 Norm of dx 3.0716e-05 Done for param eps_tk = 0.0081 Predicted improvement: 0.174604886 lambda = 1; f = -3445.8960849 Norm of dx 0.00016018 Done for param eps_tn = 0.0050 Predicted improvement: 0.111865776 lambda = 1; f = -3446.0021044 Norm of dx 0.00025391 Done for param y_obs = 0.0101 Predicted improvement: 0.057861053 lambda = 1; f = -3446.0021043 lambda = 0.33333; f = -3446.0021044 lambda = 0.11111; f = -3446.0021044 lambda = 0.037037; f = -3446.0021044 lambda = 0.012346; f = -3446.0021044 lambda = 0.0041152; f = -3446.0021044 lambda = 0.0013717; f = -3446.0021044 lambda = 0.00045725; f = -3446.0021044 lambda = 0.00015242; f = -3446.0021044 lambda = 5.0805e-05; f = -3446.0021044 lambda = 1.6935e-05; f = -3446.0021044 lambda = 5.645e-06; f = -3446.0021044 lambda = 1.8817e-06; f = -3446.0021044 lambda = 6.2723e-07; f = -3446.0021044 lambda = 2.0908e-07; f = -3446.0021044 lambda = 6.9692e-08; f = -3446.0021044 lambda = 2.3231e-08; f = -3446.0021044 lambda = 7.7435e-09; f = -3446.0021044 lambda = 2.5812e-09; f = -3446.0021044 Norm of dx 2.8028e-10 Done for param rhoz = 0.9960 Predicted improvement: 0.986930551 lambda = 1; f = -3447.1964174 Norm of dx 0.010235 Done for param rhog = 0.9462 Predicted improvement: 0.001212997 lambda = 1; f = -3447.1976380 Norm of dx 0.00024022 Done for param rho_n = 0.9823 Predicted improvement: 0.003508858 lambda = 1; f = -3447.2011742 Norm of dx 0.00082239 Done for param rho_k = 0.9268 Sequence of univariate steps!! Actual dxnorm 0.010277 FVAL -3447.2012 Improvement 1.662 Ftol 1e-05 Htol 1e-05 Gradient norm 8309794419.1946 Minimum Hessian eigenvalue -8611611.9069 Maximum Hessian eigenvalue 6.50475376212391e+22 Elapsed time for iteration 0.93573 s. Iteration 4 Correct for low angle: 8.0171e-09 Predicted improvement: 196809.501126433 lambda = 1; f = -3446.9966807 lambda = 0.33333; f = -3447.2976899 lambda = 0.11111; f = -3447.2528323 lambda = 0.037037; f = -3447.2206062 lambda = 0.012346; f = -3447.2078992 lambda = 0.0041152; f = -3447.2034434 lambda = 0.0013717; f = -3447.2019337 lambda = 0.00045725; f = -3447.2014277 lambda = 0.00015242; f = -3447.2012587 lambda = 5.0805e-05; f = -3447.2012024 lambda = 1.6935e-05; f = -3447.2011836 lambda = 5.645e-06; f = -3447.2011773 lambda = 1.8817e-06; f = -3447.2011752 lambda = 6.2723e-07; f = -3447.2011745 lambda = 2.0908e-07; f = -3447.2011743 lambda = 6.9692e-08; f = -3447.2011742 lambda = 2.3231e-08; f = -3447.2011742 lambda = 7.7435e-09; f = -3447.2011742 lambda = 2.5812e-09; f = -3447.2011742 Norm of dx 0.0094737 Predicted improvement: 0.008329139 lambda = 1; f = -3447.3059205 Norm of dx 3.3887e-05 Done for param eps_z = 0.0052 Predicted improvement: 0.002447118 lambda = 1; f = -3447.3083875 Norm of dx 3.7986e-05 Done for param eps_g = 0.0110 Predicted improvement: 0.006247078 lambda = 1; f = -3447.3145756 Norm of dx 4.5565e-05 Done for param eps_tk = 0.0081 Predicted improvement: 0.002388636 lambda = 1; f = -3447.3169504 Norm of dx 1.7511e-05 Done for param eps_tn = 0.0051 Predicted improvement: 0.013305197 lambda = 1; f = -3447.3300675 Norm of dx 8.351e-05 Done for param y_obs = 0.0101 Predicted improvement: 0.000292278 lambda = 1; f = -3447.3306515 lambda = 1.9332; f = -3447.3311955 lambda = 3.7372; f = -3447.3322447 lambda = 7.2247; f = -3447.3342631 lambda = 13.967; f = -3447.2011742 lambda = 9.4043; f = -3447.3355180 lambda = 11.923; f = -3447.2011742 lambda = 10.341; f = -3447.3360556 lambda = 11.263; f = -3447.2011742 lambda = 10.7; f = -3447.3362617 lambda = 11.034; f = -3447.2011742 lambda = 10.833; f = -3447.2011742 lambda = 10.713; f = -3447.3362692 Norm of dx 1.4637e-06 Done for param rhoz = 0.9960 Predicted improvement: 0.011328610 lambda = 1; f = -3447.3476090 Norm of dx 0.0013846 Done for param rhog = 0.9417 Predicted improvement: 0.000032832 lambda = 1; f = -3447.3476418 Norm of dx 4.0096e-05 Done for param rho_n = 0.9822 Predicted improvement: 0.000138719 lambda = 1; f = -3447.3477803 Norm of dx 0.00016575 Done for param rho_k = 0.9266 Sequence of univariate steps!! Actual dxnorm 0.0045188 FVAL -3447.3478 Improvement 0.14661 Ftol 1e-05 Htol 1e-05 Gradient norm 394.4323 Minimum Hessian eigenvalue 6333.1232 Maximum Hessian eigenvalue 99263759.0987 Elapsed time for iteration 1.1296 s. Iteration 5 Predicted improvement: 0.207751735 lambda = 1; f = -3447.3477792 lambda = 0.33333; f = -3447.3477802 lambda = 0.11111; f = -3447.3477803 lambda = 0.037037; f = -3447.3477803 lambda = 0.012346; f = -3447.3477803 lambda = 0.0041152; f = -3447.3477803 lambda = 0.0013717; f = -3447.3477803 lambda = 0.00045725; f = -3447.3477803 lambda = 0.00015242; f = -3447.3477803 lambda = 5.0805e-05; f = -3447.3478014 lambda = 9.8216e-05; f = -3447.3478211 lambda = 0.00018987; f = -3447.3477803 lambda = 0.00012785; f = -3447.3477803 lambda = 0.00010084; f = -3447.3478222 lambda = 0.00011627; f = -3447.3477803 lambda = 0.00010675; f = -3447.3477803 lambda = 0.00010142; f = -3447.3478224 lambda = 0.00010458; f = -3447.3477803 lambda = 0.00010267; f = -3447.3478230 lambda = 0.00010381; f = -3447.3477803 Norm of dx 0.0056633 Predicted improvement: 0.000193505 lambda = 1; f = -3447.3480162 Norm of dx 5.0876e-06 Done for param eps_z = 0.0052 Predicted improvement: 0.000552074 lambda = 1; f = -3447.3485698 Norm of dx 1.8175e-05 Done for param eps_g = 0.0110 Predicted improvement: 0.000021773 lambda = 1; f = -3447.3485916 Norm of dx 3.3112e-06 Done for param y_obs = 0.0101 Predicted improvement: 0.000098015 lambda = 1; f = -3447.3485871 lambda = 0.33333; f = -3447.3485901 lambda = 0.11111; f = -3447.3485911 lambda = 0.037037; f = -3447.3485914 lambda = 0.012346; f = -3447.3485915 lambda = 0.0041152; f = -3447.3485916 lambda = 0.0013717; f = -3447.3485916 lambda = 0.00045725; f = -3447.3485916 lambda = 0.00015242; f = -3447.3485916 lambda = 5.0805e-05; f = -3447.3485916 lambda = 1.6935e-05; f = -3447.3485916 lambda = 5.645e-06; f = -3447.3485916 lambda = 1.8817e-06; f = -3447.3485916 lambda = 6.2723e-07; f = -3447.3485916 lambda = 2.0908e-07; f = -3447.3485916 lambda = 6.9692e-08; f = -3447.3485916 lambda = 2.3231e-08; f = -3447.3485916 lambda = 7.7435e-09; f = -3447.3485916 lambda = 2.5812e-09; f = -3447.3485916 Norm of dx 1.1516e-08 Done for param rhoz = 0.9960 Predicted improvement: 0.000052902 lambda = 1; f = -3447.3486445 Norm of dx 9.5516e-05 Done for param rhog = 0.9416 Sequence of univariate steps!! Actual dxnorm 9.7807e-05 FVAL -3447.3486 Improvement 0.00086418 Ftol 1e-05 Htol 1e-05 Gradient norm 389.2664 Minimum Hessian eigenvalue 6306.205 Maximum Hessian eigenvalue 99264395.7911 Elapsed time for iteration 1.0403 s. Iteration 6 Predicted improvement: 0.201477980 lambda = 1; f = -3447.3486434 lambda = 0.33333; f = -3447.3486444 lambda = 0.11111; f = -3447.3486445 lambda = 0.037037; f = -3447.3486445 lambda = 0.012346; f = -3447.3486445 lambda = 0.0041152; f = -3447.3486445 lambda = 0.0013717; f = -3447.3486445 lambda = 0.00045725; f = -3447.3486445 lambda = 0.00015242; f = -3447.3486445 lambda = 5.0805e-05; f = -3447.3486445 lambda = 1.6935e-05; f = -3447.3486445 lambda = 5.645e-06; f = -3447.3486445 lambda = 1.8817e-06; f = -3447.3486445 lambda = 6.2723e-07; f = -3447.3486445 lambda = 2.0908e-07; f = -3447.3486446 lambda = 4.0418e-07; f = -3447.3486445 lambda = 2.7215e-07; f = -3447.3486446 lambda = 3.4504e-07; f = -3447.3486446 lambda = 4.3745e-07; f = -3447.3486445 lambda = 3.794e-07; f = -3447.3486445 lambda = 3.4833e-07; f = -3447.3486446 lambda = 3.6665e-07; f = -3447.3486445 lambda = 3.5555e-07; f = -3447.3486446 lambda = 3.6217e-07; f = -3447.3486445 lambda = 3.5818e-07; f = -3447.3486446 Norm of dx 0.0055509 Predicted improvement: 0.083791763 lambda = 1; f = -3447.3486443 lambda = 0.33333; f = -3447.3486445 lambda = 0.11111; f = -3447.3486445 lambda = 0.037037; f = -3447.3486445 lambda = 0.012346; f = -3447.3486445 lambda = 0.0041152; f = -3447.3486445 lambda = 0.0013717; f = -3447.3486445 lambda = 0.00045725; f = -3447.3486445 lambda = 0.00015242; f = -3447.3486445 lambda = 5.0805e-05; f = -3447.3486445 lambda = 1.6935e-05; f = -3447.3486445 lambda = 5.645e-06; f = -3447.3486445 lambda = 1.8817e-06; f = -3447.3486445 lambda = 6.2723e-07; f = -3447.3486445 lambda = 2.0908e-07; f = -3447.3486445 lambda = 6.9692e-08; f = -3447.3486445 lambda = 2.3231e-08; f = -3447.3486445 lambda = 7.7435e-09; f = -3447.3486445 lambda = 2.5812e-09; f = -3447.3486446 lambda = 4.9899e-09; f = -3447.3486445 lambda = 3.3599e-09; f = -3447.3486445 lambda = 2.6501e-09; f = -3447.3486446 lambda = 3.0556e-09; f = -3447.3486446 lambda = 3.5232e-09; f = -3447.3486445 lambda = 3.2347e-09; f = -3447.3486445 lambda = 3.0731e-09; f = -3447.3486446 lambda = 3.1691e-09; f = -3447.3486445 lambda = 3.1111e-09; f = -3447.3486446 lambda = 3.1458e-09; f = -3447.3486445 Norm of dx 0.0032607 Sequence of univariate steps!! Try diagonal Hessian Predicted improvement: 0.040416163 lambda = 1; f = -3447.3486445 lambda = 0.33333; f = -3447.3486445 lambda = 0.11111; f = -3447.3486445 lambda = 0.037037; f = -3447.3486445 lambda = 0.012346; f = -3447.3486445 lambda = 0.0041152; f = -3447.3486445 lambda = 0.0013717; f = -3447.3486445 lambda = 0.00045725; f = -3447.3486445 lambda = 0.00015242; f = -3447.3486445 lambda = 5.0805e-05; f = -3447.3486445 lambda = 1.6935e-05; f = -3447.3486445 lambda = 5.645e-06; f = -3447.3486445 lambda = 1.8817e-06; f = -3447.3486445 lambda = 6.2723e-07; f = -3447.3486445 lambda = 2.0908e-07; f = -3447.3486445 lambda = 6.9692e-08; f = -3447.3486445 lambda = 2.3231e-08; f = -3447.3486445 lambda = 7.7435e-09; f = -3447.3486445 lambda = 2.5812e-09; f = -3447.3486445 lambda = -6.2723e-07 lambda = -6.2723e-07; f = -3447.3486446 lambda = -2.0908e-07; f = -3447.3486446 lambda = -6.9692e-08; f = -3447.3486446 lambda = -2.3231e-08; f = -3447.3486446 lambda = -7.7435e-09; f = -3447.3486446 lambda = -2.5812e-09; f = -3447.3486446 Norm of dx 0.00020771 Try gradient direction Predicted improvement: 7.576415326 lambda = 1; f = -3447.3471297 lambda = 0.33333; f = -3447.3484762 lambda = 0.11111; f = -3447.3486258 lambda = 0.037037; f = -3447.3486424 lambda = 0.012346; f = -3447.3486443 lambda = 0.0041152; f = -3447.3486445 lambda = 0.0013717; f = -3447.3486445 lambda = 0.00045725; f = -3447.3486445 lambda = 0.00015242; f = -3447.3486445 lambda = 5.0805e-05; f = -3447.3486445 lambda = 1.6935e-05; f = -3447.3486445 lambda = 5.645e-06; f = -3447.3486445 lambda = 1.8817e-06; f = -3447.3486445 lambda = 6.2723e-07; f = -3447.3486445 lambda = 2.0908e-07; f = -3447.3486445 lambda = 6.9692e-08; f = -3447.3486445 lambda = 2.3231e-08; f = -3447.3486445 lambda = 7.7435e-09; f = -3447.3486445 lambda = 2.5812e-09; f = -3447.3486445 lambda = -6.2723e-07 lambda = -6.2723e-07; f = -3447.3486351 lambda = -2.0908e-07; f = -3447.3486415 lambda = -6.9692e-08; f = -3447.3486436 lambda = -2.3231e-08; f = -3447.3486443 lambda = -7.7435e-09; f = -3447.3486445 lambda = -2.5812e-09; f = -3447.3486446 Norm of dx 0.038927 No further improvement is possible! Actual dxnorm 1.9951e-09 FVAL -3447.3486 Improvement 1.4485e-07 Ftol 1e-05 Htol 1e-05 Gradient norm 389.2664 Minimum Hessian eigenvalue 6306.205 Maximum Hessian eigenvalue 99264395.7911 Estimation successful. Final value of minus the log posterior (or likelihood):-3447.348645 POSTERIOR KERNEL OPTIMIZATION PROBLEM! (minus) the hessian matrix at the "mode" is not positive definite! => posterior variance of the estimated parameters are not positive. You should try to change the initial values of the parameters using the estimated_params_init block, or use another optimization routine. The following parameters are at the prior bound: rhoz Some potential solutions are: - Check your model for mistakes. - Check whether model and data are consistent (correct observation equation). - Shut off prior_trunc. - Change the optimization bounds. - Use a different mode_compute like 6 or 9. - Check whether the parameters estimated are identified. - Check prior shape (e.g. Inf density at bound(s)). - Increase the informativeness of the prior. [Warning: The results below are most likely wrong!] [> In dynare_estimation_1 (line 324) In dynare_estimation (line 105) In RBC_tax_estimation.driver (line 375) In dynare (line 293)] MODE CHECK Fval obtained by the minimization routine (minus the posterior/likelihood)): -3447.348645 [Warning: Matrix is singular, close to singular or badly scaled. Results may be inaccurate. RCOND = NaN.] [> In dynare_estimation_1 (line 347) In dynare_estimation (line 105) In RBC_tax_estimation.driver (line 375) In dynare (line 293) ] RESULTS FROM POSTERIOR ESTIMATION parameters prior mean mode s.d. prior pstdev rhoz 0.700 0.9960 NaN beta 0.1000 rhog 0.700 0.9416 NaN beta 0.1000 rho_n 0.700 0.9822 NaN beta 0.1000 rho_k 0.700 0.9266 NaN beta 0.1000 standard deviation of shocks prior mean mode s.d. prior pstdev eps_z 0.010 0.0052 NaN invg 0.1000 eps_g 0.010 0.0110 NaN invg 0.1000 eps_tk 0.010 0.0081 NaN invg 0.1000 eps_tn 0.010 0.0051 NaN invg 0.1000 standard deviation of measurement errors prior mean mode s.d. prior pstdev y_obs 0.010 0.0101 NaN invg 0.1000 Log data density [Laplace approximation] is NaN. {Error using chol Matrix must be positive definite. 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 474) 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 RBC_tax_estimation.driver (line 375) oo_recursive_=dynare_estimation(var_list_); Error in dynare (line 293) evalin('base',[fname '.driver']) ;}