I get the following error message from Dynare
"Warning: Matrix is close to singular or badly scaled. Results may be inaccurate. RCOND = 6.644063e-28.
In dyn_first_order_solver at 217
In stochastic_solvers at 172
In resol at 118
In stoch_simul at 76
In code at 278
In dynare at 120"
The rank condition is however verified. What is this and how do I solve it!!
Thanx.
I attach the mod file
nogfallRkadj.mod (3.93 KB)