DYNARE_SOLVE (solve_algo=2|4): the Dulmage-Mendelsohn decomposition returned a non-square block. This means that the Jacobian is singular. You may want to try another value for solve_algo.

Steady state
1

Hi,
I’m trying to replicate the baseline model in Neumeyer and Perri (2005). It is a modified neoclassical small open economy model.
I’m coming across this error, which I’m not sure how to handle:
DYNARE_SOLVE (solve_algo=2|4): the Dulmage-Mendelsohn decomposition returned a non-square block. This means that the Jacobian is singular. You may want to try another value for solve_algo.

Any help/advice will be greatly appreciated. I’ve attached the .mod file.
replication_code.mod (1.5 KB)

2

Check the model implementation.

t = t(-1)+1;

is clearly not consistent with a steady state. Also note that that model is hard to numerically replicate due to issues with time aggregation and filtering.