Error: Hessian is equal to zero & The generalized Schur (QZ) decomposition failed


I’m an undergraduate student in Korea, and I have problem with running dynare.
Here is my mod file about DSGE model,
asset.mod (2.7 KB)
There are errors “stoch_simul: using order = 1 because Hessian is equal to zero”
and “The generalized Schur (QZ) decomposition failed.”
I don’t even fully understand what this error means.
Is there any misunderstanding about my models?

Your help would be appreciated a lot.
Thanks in advance.


Check your timing.

k = (1-delta)*k+delta*i(-1);

clearly is not correct.

Thanks for your help!
I correct all the timing, but I’m still in the same error.
Is there anything else to check besides timing issue?

It seems you are missing an equation. Only the real w-p is determined in your model, not the individual components.

I finally solved it!
I really appreciate for your help.