error in steady state and transition, deterministic model
Posted: Thu Sep 03, 2015 10:42 pm
I am solving a deterministic growth model with two capital goods. I wrote a matlab code to solve the steady state and a dynare code to solve the transition after a permanent shock. My dynare code get the same steady state as my matlab code. However, the transition path failed with "Warning: Matrix is close to singular or badly scaled. Results may be inaccurate. RCOND = 2.002503e-52."
I then put check after command steady and it gives:
----------------
EIGENVALUES:
Modulus Real Imaginary
0.9696 0.9696 0
1.064 1.064 0
Inf Inf 0
Inf Inf 0
Inf Inf 0
There are 4 eigenvalue(s) larger than 1 in modulus
for 3 forward-looking variable(s)
The rank condition ISN'T verified!
-----
mod file is attached. could someone please help me? Thanks.
I then put check after command steady and it gives:
----------------
EIGENVALUES:
Modulus Real Imaginary
0.9696 0.9696 0
1.064 1.064 0
Inf Inf 0
Inf Inf 0
Inf Inf 0
There are 4 eigenvalue(s) larger than 1 in modulus
for 3 forward-looking variable(s)
The rank condition ISN'T verified!
-----
mod file is attached. could someone please help me? Thanks.