jpfeifer wrote:But with the posted model, Dynare says
ERROR: There are 86 equations but 95 endogenous variables!
Dear Jpfeifer,
Thanks for your help.
I modified my code and it met the condition. but another problem occured when I ran the code as:
"...
The rank condition is verified.
Improvement on iteration 43 = 0.000000000
improvement < crit termination
Objective function at mode: -1899.896983
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.
Warning: The results below are most likely wrong!
> In dynare_estimation_1 at 433
In dynare_estimation at 70
In riksbankdsgewithoutvartry at 979
In dynare at 120
Log data density [Laplace approximation] is 1636.059824.
Warning: BETAINV did not converge for a = 77.7331, b = 0.62688, p = 1.
> In betainv at 109
In prior_bounds at 85
In dynare_estimation_1 at 866
In dynare_estimation at 70
In riksbankdsgewithoutvartry at 979
In dynare at 120
Warning: File 'riksbankdsgewithoutvartry/metropolis' not found.
> In CheckPath at 41
In metropolis_hastings_initialization at 62
In random_walk_metropolis_hastings at 69
In dynare_estimation_1 at 884
In dynare_estimation at 70
In riksbankdsgewithoutvartry at 979
In dynare at 120
??? 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 69
[ ix2, ilogpo2, ModelName, MhDirectoryName, fblck, fline, npar, nblck, nruns, NewFile, MAX_nruns, d ] = ...
Error in ==> dynare_estimation_1 at 884
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 70
dynare_estimation_1(var_list,dname);
Error in ==> riksbankdsgewithoutvartry at 979
dynare_estimation(var_list_);
Error in ==> dynare at 120
evalin('base',fname) ;
;"
Could you provide some suggestions?
Thanks a lot!
Best
Lixin