Deterministic simulation


I hope there is someone who will be able to help me out.

I write a model with Dynare (dynamic general equailibrium in open macroeconomics). When I run my code, I get Blanchard-Khan and rank condition right. My equations don’t have residuals neither, namely the steady state values should be fine. But Dynare fails to simulate the model by giving this error message: Warning: Matrix is singular to working precision, namely Dynare cannot find a converging path of the simulation.

What I have to look at to solve the problem?

Many thanks,

Most likely this means that there is no unique solution to your problem. The fact that the Blanchard-Kahn condition are satisfied do not guarantee that there is a unique solution to the full problem: BK conditions are only a local property, tested at the initial and/or final point of the simulation.


have you found a way to fix this problem?