Dynare forums

Dear All,
I have run an open one country dsge model and it run for a while then end up as the following:
Log data density [Laplace approximation] is NaN.

Error using chol
Matrix must be positive definite.

Error in metropolis_hastings_initialization (line 68)
d = chol(vv);

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

Error in dynare_estimation_1 (line 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 (line 89)
dynare_estimation_1(var_list,dname);

Error in Thesis130 (line 942)
dynare_estimation(var_list_);

Error in dynare (line 180)
evalin('base',fname) ;

I have attached my mod file and my data, is anyone who could kindly have a look?
i am currently in the final year of my phd, however, in my universities, I do not get much help in Dynare programming, hence, I wish some kind people could give some guidance, and I will be grateful.
Sincerely, Jesse

Sorry, but I cannot run the files, because of

Code: Select all

Blanchard Kahn conditions are not satisfied: indeterminacy

at the initial values.

Dear Johannes,
Thank you very much for your kind help, i will correct my model according to your helpful suggestions.
Jesse