Dynare forums

hi all
when I run the mod file this message appears, plz help me to solve this erroress:

Log data density [Laplace approximation] is -173.755846.

??? Error using ==> chol
Matrix must be positive definite.

Error in ==> metropolis_hastings_initialization at 68
d = chol(vv);

Error in ==> random_walk_metropolis_hastings at 62
[ ix2, ilogpo2, ModelName, MetropolisFolder, fblck, fline, npar, nblck, nruns,
NewFile, MAX_nruns, d ] = ...

Error in ==> dynare_estimation_1 at 782

feval(options_.posterior_sampling_method,objective_function,options_.proposal_distribution,xparam1,invhess,bounds,dataset_,options_,M_,estim_params_,bayestopt_,oo_);

Error in ==> dynare_estimation at 89
dynare_estimation_1(var_list,dname);

Error in ==> ueiran at 611
dynare_estimation(var_list_);

Error in ==> dynare at 180
evalin('base',fname) ;


the mod file and data file attached:

Your estimation routine could be incorrect due the steady state not being correctly updated. This could explain your problem. Dynare will set the estimated parameters during estimation, but not take any dependence into account that you did not specify. For example, deltak should change the steady state of capital. If it appears in your model equations, you need to take this into account. That’s why you should use model-local variables (the ones with the pound operator) or a steady state file. See Remark 4 (Parameter dependence and the use of model-local variables) in Pfeifer(2013): "A Guide to Specifying Observation Equations for the Estimation of DSGE Models" https://sites.google.com/site/pfeiferecon/Pfeifer_2013_Observation_Equations.pdf.

The most immediate issue is that you try to estimate B1, but it does not appear in your model at all. Similarly, there is a bunch of other parameters that are not identified:

e_H is collinear w.r.t. all other params!
alp is collinear w.r.t. all other params!
rhoa is collinear w.r.t. all other params!
sigma is collinear w.r.t. all other params!
phi is collinear w.r.t. all other params!
zeta is collinear w.r.t. all other params!
beta is collinear w.r.t. all other params!

You need to find out why. It could be parameter depenendence or simply that your observables are not sufficient.