singular Jacobian in multicountry RBC
Posted: Sun Jun 01, 2014 10:48 am
Hello,
I work in the Dpt for Environment in the government of the UK and I have tried to build a model reflecting two countries, one at risk of experiencing some flooding and the other not at risk. The model works fine in autarchy but when I introduce the possibility of trade I get the following message even when I set imports to be zero at any time
??? Error using ==> lnsrch1 at 71
Some element of Newton direction isn't finite. Jacobian maybe singular or there is a
problem with initial values
Sure this is something very trivial but I´m not able to figure out what it is.
Any help?
Thank you
I work in the Dpt for Environment in the government of the UK and I have tried to build a model reflecting two countries, one at risk of experiencing some flooding and the other not at risk. The model works fine in autarchy but when I introduce the possibility of trade I get the following message even when I set imports to be zero at any time
??? Error using ==> lnsrch1 at 71
Some element of Newton direction isn't finite. Jacobian maybe singular or there is a
problem with initial values
Sure this is something very trivial but I´m not able to figure out what it is.
Any help?
Thank you