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Ramsey Optimal Policy

PostPosted: Tue Oct 23, 2012 1:56 pm
by marzie
I have a linear model and when I try to run ramsey with a linear planner objective function, it crashes.
This is while there is no problem when I use a quadratic function as the planner objective.
Would you mind advising me if there is any way to solve this problem.

The error I get is:

Some element of Newton direction isn't finite. Jacobian maybe singular or there is a
problem with initial values


Thank you

Re: Ramsey Optimal Policy

PostPosted: Mon Nov 12, 2012 3:00 pm
by SébastienVillemot
Looks like your model does not have a unique steady state.

If you want more detailed advice, you have to post your MOD-file.