SS NaN - Warning: Matrix is singular to working precision.

[sophapi]

I am trying to run a simple one good two country model. I do not understand what am I doing wrong. I have initialized the parameters and declared everything as it is supposed to be but I get the following message when I try to run the model. Do you know what am I missing? Thank you.


Warning: Matrix is singular to working precision.
> In evaluate_steady_state (line 85)
In steady_ (line 54)
In steady (line 81)
In OECM (line 254)
In dynare (line 180)

Residuals of the static equations:

Equation number 1 : NaN
Equation number 2 : NaN
Equation number 3 : NaN
Equation number 4 : NaN
Equation number 5 : NaN
Equation number 6 : NaN
Equation number 7 : NaN
Equation number 8 : NaN
Equation number 9 : NaN
Equation number 10 : NaN
Equation number 11 : NaN
Equation number 12 : NaN
Equation number 13 : NaN
Equation number 14 : NaN
Equation number 15 : NaN
Equation number 16 : NaN
Equation number 17 : NaN
Equation number 18 : 0

Error using print_info (line 80)
The steady state contains NaN or Inf

Error in steady (line 92)
print_info(info,options_.noprint, options_);

Error in OECM (line 254)
steady;

Error in dynare (line 180)
evalin('base',fname) ;

[jpfeifer]

Put resid before steady. You will see that the first two equations include a constant term (due to (1-delta)) that should not be there in a properly linearized model.

[sophapi]

Thank you for your response. This helped make the code run.