Hi, I am working on a RBC model with endogenous discount factor with working capital constraint for firms…

so

expectation sum mu_t U(ct,ht)+lambda_t*budget constraint + eta_t*(mu_t-mu_t-1*f(ct-1,ht-1))

I am pretty sure steady state exists… I calculate steady state equations by hand and solved it by fsolve… However, dynare always says

The generalized Schur (QZ) decomposition failed. For more information, see the documentation for

Lapack function dgges: info=12, n=10. You can also run model_diagnostics to get more information on

what may cause this problem.

Does that mean I don’t have a unique steady state??

Thanks…

baselinevar.mod (1.3 KB)