The generalized Schur (QZ) decomposition failed.

For more information, see the documentation for

Lapack function dgges: info=30, n=23. You can

also run model_diagnostics to get more

information on what may cause this problem.

This is the error that I get.

And my mod file is

environ_baseline1.mod (4.5 KB)

and the command model_diagnotics didn’t work, where should I put it?

Does your model work with the probabilities?

I’m sorry I’ve not quit get it. What do you mean " work with the probabilities"?

You have the `p`

and `(1-p)`

parts. If you drop them, you should have a rather standard NK model. Does that work?

I just tried. When I dropped them, I got the same error. Should simplify it again?

Yes, that’s the only way to go.

I’ve simplified it a little bit more, and it works now! Thank you very much indeed!!