Dynare forums

Hi !

When running the attached program using dynare 4.1.0, I get different results when running it in Matlab 2007b and 2010a. Specifically, when running it in 2007b the model is solved, while in 2010b I get the error message "Blanchard Kahn conditions are not
satisfied: indeterminacy".

Does anyone have an idea what causes this difference?

Many thanks!

Please upgrade to the latest version of Dynare and tell us if you can still reproduce the problem.

I still get different answers when running the two matlab versions. However, a difference compared to before is that version 7.5 now indicates that there is some kind of problem :

"Warning: Matrix is close to singular or badly scaled.
Results may be inaccurate. RCOND =
5.427874e-020."

but proceeds and solves the model (computing transtition function etc). The more recent version gives a similar message

" Results may be inaccurate. RCOND =
5.427874e-020. "

and then breaks complaining about Blanchard Kahn.

Note that this seems to depend on the model. I changed the calibration (and discovered an error and modified the model a little) and the problem vanished, so my problem has been solved.

Many thanks for the help

Andreas