I try to estimate a medium-scale DSGE model but I encounter the following warning:

- Code: Select all
`Warning: Matrix is singular, close to singular or badly scaled. Results may be inaccurate. RCOND = NaN.`

> In kalman_filter at 182

In dsge_likelihood at 646

In gmhmaxlik at 108

In dynare_estimation_1 at 418

In dynare_estimation at 89

In Bayes at 770

In dynare at 180

Warning: Matrix is singular to working precision.

> In lyapunov_symm at 145

In dsge_likelihood at 374

In gmhmaxlik at 108

In dynare_estimation_1 at 418

In dynare_estimation at 89

In Bayes at 770

In dynare at 180

This happens for each iteration. The model seems to be ok. When I run stoch.simul command with given values of parameteres, all variables converge to their st.st. values and the responses are as expected.

However, the estimation does not work. What can I do with this? Is there any solution? I would like to kindly ask you for a help. Please see the model code and data attached.

Thank you very much.

Jan