I keep getting an error during the running process, I don’t know which part is apart from the problem, please help.

dsge21.mod (2.2 KB)

Substitution of endo leads >= 2: added 1 auxiliary variables and equations.

Found 29 equation(s).

Evaluating expressions…done

ERROR: Division by zero!

…division by zero error encountred when converting equation 28 to static

Hi,

it even tells you the error, you are dividing by zero. The problematic equation is in line 35 where you have `kappa/((1-tao_no)*(1+R_K)*(K_P(2)-K_P(1)))`

.

This boils down to `kappa/0`

, which is not possible.

Thanks for your reply. I have fixed it ,then it work. But a new problem comes out, please help me check this out.

it shows:

Starting Dynare (version 5.0).

Calling Dynare with arguments: none

Starting preprocessing of the model file …

Substitution of endo leads >= 2: added 1 auxiliary variables and equations.

Found 29 equation(s).

Evaluating expressions…done

Computing static model derivatives (order 1).

Computing dynamic model derivatives (order 2).

Processing outputs …

done

Preprocessing completed.

dsge21.mod (2.2 KB)

complete version:

Starting Dynare (version 5.0).

Calling Dynare with arguments: none

Starting preprocessing of the model file …

Substitution of endo leads >= 2: added 1 auxiliary variables and equations.

Found 29 equation(s).

Evaluating expressions…done

Computing static model derivatives (order 1).

Computing dynamic model derivatives (order 2).

Processing outputs …

done

Preprocessing completed.

In trust_region>dogleg (line 193)

In trust_region (line 108)

In dynare_solve (line 313)

In evaluate_steady_state (line 265)

In steady_ (line 55)

In steady (line 80)

In dsge21.driver (line 403)

In dynare (line 281)

警告: 矩阵为奇异工作精度。

In trust_region>dogleg (line 193)

In trust_region (line 108)

In dynare_solve (line 313)

In evaluate_steady_state (line 265)

In steady_ (line 55)

In steady (line 80)

In dsge21.driver (line 403)

In dynare (line 281)

警告: 矩阵为奇异工作精度。

It seems you are trying a linearized model, but there are some equations that are nonlinear.