error: Index in position 2 exceeds array bounds (must not exceed 2).

Hi. I need help fixing this error in my code. I have compared it to similar issues/code back cant seem to figure out the fix.

eta=1.5;
beta=0.8;               % discount factor
rho=0.8;
sigma=0.1;
K=(0:0.1:10)';            % grid over capital
dimK=size(K,1);   % grid size of K
K_prime=K';
dimK_prime=dimK';
J=14;   %life period
r=0.25;  % interest rate
et=[ 1.00 1.30 1.53 1.68 1.76 1.77 1.76 1.72 1.61 0.54 0.54 0.54 0.54 0.54]; %%et
%meanY=ones(1, J);

%%shock and transition matrix%%
Y= [et*(1-sigma) et*(1+sigma)]; %income shock
dimY=2;
transY= [ (1+rho)/2 (1-rho)/2;(1-rho)/2 (1+rho)/2]; %transiiton matrix: technology shock

V=ones(dimK,J+1)*(-1e10);  % initialize the value function. Rows are x, columns the iteration
U=ones(dimK,1)*(-1e10);
A=ones(dimK, J+1);
C=zeros(dimK, J);
A_ind=zeros(dimK, J+1);

V(:, J+1)=zeros(dimK,1);  % initialize the value function. Rows are x, columns the iteration


Bet=ones(1,J)*beta;
Bet=cumprod(Bet)/beta;

%V0=ones(dimK,dimK);
indY=1:dimY;
V0=ones(dimK,dimY)*(-1e10);

for iter=J:-1:1  % loop over
    iter;
    for indY=1:dimY
        V0_1(:, indY)=interp1(K, V0(:, indY), K_prime, 'linear', 'extrap');
    end
    for ik=1:dimK     % loop over all current cake sizes
        for ik2=1:dimK
            c=K(ik)*(1+r)+Y(indY)-K(ik2);
            if c>0
                U(ik, ik2)=((c)^(1-eta)-1)/(1-eta)+beta*transY(indY, :).*squeeze(V0_1(ik2, iter+1)');
            else
                U(ik2)=-1e10;
            end
        end
        [V(ik, iter), ind]=max(U);     % optimizing over size of next period cake
        A(ik, iter)=K(ind);
        A_ind(ik, iter)=ind;
        C(ik, iter)=K(ik)*(1+r)+Y(iter)-K(ind);
    end
end

I assume ther error is in the bolded line, but Im not sure what the proper fix is.

Please help! Thank you, Matlab wizards!

Answer 1

[Adam Danz]

The error is happening here

squeeze(V0_1(ik2, iter+1)')
% or,   V0_1( 1 ,   15  )

V0_1 is 101 x 2.

iter is equal to 14 on the first iteration of the J-loop.

So, you're trying to access the 15th column (iter+1 ) of V0_1 but it only has 2 columns.