MJDGGES returns the following error code14

[kateryna]

Hi, I am trying to solve international RBC with investment adjustment costs and dynare reports the following

STEADY-STATE RESULTS:

k1 2.89526
k2 2.89526
c1 3.84806
c2 3.84806
b1 -1.6
b2 7.8727
a1 0
a2 0
??? Error using ==> print_info at 49
MJDGGES returns the following error code14

Error in ==> stoch_simul at 44
print_info(info);

Error in ==> twocountry1 at 135
info = stoch_simul(var_list_);

Please could you help me what does this mean and what to da with that?

Thank you in advance,
Kateryna

Error in ==> dynare at 102
evalin('base',fname) ;

[StephaneAdjemian]

Hi Kateryna, We cannot help if you do not post your mod file... Did you read this post?

Best, Stéphane.

[kateryna]

Hi, thank you for the reply,
here is the file,
Kateryna

[StephaneAdjemian]

As in this post, you may have a scaling problem in the Jacobian matrix of your model evaluated at the deterministic steady state. The smaller value in this jacobian matrix is of order 1e-5 while the bigger is of order 1e3. In this case dgges in not able to compute the generalized schur decomposition. I think that the problem is related to the steady state value of b2. This value is too big compared to the other steady state values. I don't know the model, but shouldn't you have a constraint between exp(b1) and exp(b2) ?

Best,
Stéphane.