Hello!

I ran my model and I got the expected outcome but unfortunately with the error message below:

Warning: Matrix is close to singular or badly scaled.

Results may be inaccurate. RCOND = 4.238587e-064.

In evaluate_steady_state at 76

In resol at 108

In check at 71

In Gambia at 253

In dynare at 120

How can I solve this problem and get the best result?

Adding one more equation to my model, I got this message:

Warning: Matrix is close to singular or badly scaled.

Results may be inaccurate. RCOND = 1.179317e-063.

In evaluate_steady_state at 76

In resol at 108

In stoch_simul at 76

In Gambia at 284

In dynare at 120

??? Error using ==> print_info at 43

Blanchard Kahn conditions are not satisfied: indeterminacy

Error in ==> stoch_simul at 81

print_info(info, options_.noprint);

Error in ==> Gambia at 284

info = stoch_simul(var_list_);

Error in ==> dynare at 120

evalin(‘base’,fname) ;

and the program couldn’t run. I mean I did not get the expected outcome. I hope this may come from the initial value for the endogenous and exogenous variables.

How best can I find the steady state that satisfies the rank condition?

Thanks