I am using dynare to solve a simple RBC model with recursive preferences. The mod file is attached. I believe there is nothing wrong with the model because when do a stochastic simulation, with stoch_simul, there are no errors. Nevertheless, we a try to do a deterministic simulation, with simul, a get the following message:
Simulation terminated with NaN or Inf in the residuals or endogenous variables. There is most likely something wrong with your model.
Error in simul (line 126)
sim1;
Error in ezBasic (line 188)
simul();
Error in dynare (line 182)
evalin(‘base’,fname) ;
Using model_diagnostic, I get:
model_diagnostic: the Jacobian of the static model is singular
there is 1 colinear relationships between the variables and the equations
Colinear variables:
C
K
R
M
V
U
Colinear equations
1 2 3 4 6 7
What could be the problem?
ezBasic.mod (1.03 KB)