Consider the effective number of structural innovations in...

Consider the effective number of structural innovations in initial_estimation_checks routine. Some of the declared structural innovations may have been calibrated with a zero variance.

matlab/initial_estimation_checks.m

@@ -31,7 +31,11 @@ function DynareResults = initial_estimation_checks(objective_function,xparam1,Dy
 % along with Dynare.  If not, see <http://www.gnu.org/licenses/>.
 
 if DynareDataset.info.nvobs>Model.exo_nbr+EstimatedParameters.nvn
-    error(['initial_estimation_checks:: Estimation can''t take place because there are less shocks than observed variables!'])
+    error(['initial_estimation_checks:: Estimation can''t take place because there are less declared shocks than observed variables!'])
+end
+
+if DynareDataset.info.nvobs>find(diag(Model.Sigma_e))+EstimatedParameters.nvn
+    error(['initial_estimation_checks:: Estimation can''t take place because too many shocks have been calibrated with a zero variance!'])
 end
 
 % check if steady state solves static model (except if diffuse_filter == 1)