Hello everybody,
I need some advise for a problem with deterministic shocks. I am simulating a very basic NK model with no capital and rotemberg pricing. I am trying to reach the ZLB with a temporary shock to the discount factor. With a certain calibration I obtained complex simulated series, with others I get the error copied below. Does this happen for a mistake in my code (which I don't find) or can it happen to have these problems with deterministic simulations?what should I do when facing this problems or in general also when I am told that the matrix is singular and I get no output?
Thank you for your reply
??? Error using ==> lnsrch1 at 105
Roundoff problem in nlsearch
Error in ==> solve1 at 127
[x,f,fvec,check]=lnsrch1(xold,fold,g,p,stpmax,func,j1,j2,varargin{:});
Error in ==> sim1_purely_forward at 36
tmp = solve1(model_dynamic, [yf; yf1], 1:M_.endo_nbr, 1:M_.endo_nbr, 1, 1,
oo_.exo_simul, M_.params, oo_.steady_state, it);
Error in ==> simul at 97
sim1_purely_forward;
Error in ==> oggisi at 210
simul();
Error in ==> dynare at 120
evalin('base',fname) ;