How to solve the error reporting problem during the steady state solution process?

Steady state
1

Hi, professor，how to solve the error reporting problem during the steady state solution process? Is it because the parameter assignment is incorrect？Or because of a steady-state solution error？Thank you in advance.

Warning: The matrix is close to a singular value or scaling error. The results may not be accurate.RCOND = 1.913030e-16。

In trust_region>dogleg (line 202)
In trust_region (line 112)
In dynare_solve (line 185)
In evaluate_steady_state (line 223)
In steady_ (line 55)
In steady (line 81)
In nk_bgg4 (line 453)
In dynare (line 223)

There are 7 eigenvalue(s) larger than 1 in modulus
for 8 forward-looking variable(s)

The rank condition ISN’T verified!

Total computing time : 0h00m00s
Note: warning(s) encountered in MATLAB/Octave code

nk_bgg4.mod (3.5 KB)
comp_ss_omegabar.m (499 Bytes)

2

From what I can see, there are timing issues. I think K must be a predetermined_variables.

3

Thank you for your reply. I’ll revise the behavior equation of the department and solve it again. Thanks again.

4

Hello professor, based on your suggestion, I modified the model to determine the capital K in the entrepreneur contract and determine the variable labor L through profit maximization, but I still reported an error. Is there a problem with the steady-state solution or is the parameter assignment incorrect? Thank you in advance.

Incorrect use print_info (line 83)
Impossible to find the steady state. Either the model doesn’t have a steady state, there are an infinity of
steady states, or the guess values are too far from the solution

wrong steady (line 104)
print_info(info,options_.noprint, options_);

wrong nk_bgg4 (line 470)
steady;

wrong dynare (line 223)
evalin(‘base’,fname) ;
nk_bgg4.mod (3.5 KB)
comp_ss_omegabar.m (492 Bytes)

5

There is a problem with your steady state computations. Check why you have big residuals in some equations.

6

Okay Professor, thank you for your answer.