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hiwhile I use stoch_simul for a fully calibrated model the model seems to work well,
but if I use observations to estimae some parameters then a problem always exists:
![Dynare Dynare](http://i1288.photobucket.com/albums/b492/pzabczyk/Priors_chart_zps20aea2c5.jpg)
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 458
In dynare_estimation at 70
In lcmr at 304
In dynare at 120
MODE CHECK
Fval obtained by the minimization routine: -655.668810
Most negative variance -284255.670560 for parameter 1 (e_epsil = 0.006506)
Warning: Matrix is close to singular or badly scaled.
Results may be inaccurate. RCOND = 1.757306e-016.
> In dynare_estimation_1 at 473
In dynare_estimation at 70
In lcmr at 304
In dynare at 120
what seems to be the problem?