Help with Dynare...

[blackoutz]

Hi, I am working on a RBC model with endogenous discount factor with working capital constraint for firms...
so
expectation sum mu_t U(ct,ht)+lambda_t*budget constraint + eta_t*(mu_t-mu_t-1*f(ct-1,ht-1))

I am pretty sure steady state exists... I calculate steady state equations by hand and solved it by fsolve... However, dynare always says

The generalized Schur (QZ) decomposition failed. For more information, see the documentation for
Lapack function dgges: info=12, n=10. You can also run model_diagnostics to get more information on
what may cause this problem.

Does that mean I don't have a unique steady state??

Thanks....

[jpfeifer]

Try providing an analytical steady state. An example for the endogenous discount factor case is at https://github.com/JohannesPfeifer/DSGE_mod/blob/master/SGU_2003/SGU_2003.mod

[blackoutz]

Prof. Pfeifer,

Thanks for your reply. I have rewritten my model. However, dynare claim there is collinearity, in my capital FOC and bond FOC.
Do you know why this might be the case? Thanks!

[blackoutz]

I forgot to attach the image

[blackoutz]

I don't know why I can't post the image...
Basically

lambda(1+phi*(k_t-k_t-1))=lambda_t+1(r_k+phi(k_t+1-k_t)+1-delta)

and

R_t lambda_t+1=lambda_t

[jpfeifer]

Does your model feature unit roots?