Dynare forums

I did not have this problem in version 4.0.4. Now in version 4.1.1 I receive the following message when I run the attached mod file.

Warning: Divide by zero.
> In dr1 at 417
In resol at 128
In dynare_resolve at 45
In DsgeSmoother at 70
In dynare_estimation_1 at 1090
In dynare_estimation at 62
In BNTnlc_nonS_PP at 155
In dynare at 132
Warning: Divide by zero.
> In dr1 at 419
In resol at 128
In dynare_resolve at 45
In DsgeSmoother at 70
In dynare_estimation_1 at 1090
In dynare_estimation at 62
In BNTnlc_nonS_PP at 155
In dynare at 132

Thank you for any help you can provide.

This is because in Dynare 4.0 we were not displaying all warnings, but the division by zero was probably already present.

You not necessarily need to worry about that, it does not necessarily indicate a bug.

Ok. I will not worry about it. Thank you very much for the prompt response!
-Rob

I have subsequently discovered that the dividends variable divai in my model is the culprit. The steady state value of this variable is zero. When Dynare works out the log-linearization of the model, this results in the divide by zero warning. With this variable substituted out of the model, the warning disappears.