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

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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!

Respuesta aceptada

Adam Danz
Adam Danz el 23 de Sept. de 2020
Editada: Adam Danz el 23 de Sept. de 2020
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.

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