singular matrix

[Constant]

Hi dear all,

I'm trying to run a very simple version of Overlapping Generation Model using Dynare and getting an error message:Matrix is singular to working precision. Another error arise whens I change some parameters values:Matrix is singular, close to singular or badly scaled.
Results may be inaccurate. RCOND = NaN.

Can anybody help me to solve the problem?

Thanks!

[MichelJuillard]

There are several places where such a message can pop up. The best would be to provide the *.mod file so that we can see were the problem is.

Best

Michel

[tycons]

Hi Dear,
hereunder is a *.mod file with a similar problem.
Hope that you can help.
thanks!

[tycons]

Dear all,

I still stuck on that problem of Singular Matrix when running my dynare code (that I posted on the forum previouly). Can anyone provide me with some help?

Thanks!

[MichelJuillard]

Dear Tycons,

two things.
1) your model doesn't satisfy the local conditions for the existence of a stable trajectory: you have 4 eigenvalues larger than one for three forward looking variables. There was however a bug in the message concerning the rank condition, saying that the rank condition was satisfied. I have corrected this bug in the correction will be available in the snapshot for version 3 starting tomorrow.

2) There are several things that I don't understand in your model. Could you provide the algebra of the model with the meaning of the variables?

Thanks

Michel