I run a Ramsey model with two sectors and permanent deterministic shock. I obtain convergence but before that I get a warning that there is a singular matrix. Does this imply that the results are wrong or not?

The message I get is:

Warning: Matrix is singular to working precision.

In resol at 116

In check at 46

In bgg_onecons_twogoods_perm at 215

In dynare at 132

EIGENVALUES:

Modulus Real Imaginary

```
7.707e-017 7.707e-017 0
0.9575 0.9575 0
0.973 0.973 0
1 1 0
1.051 1.051 0
1.081 1.081 0
Inf Inf 0
Inf Inf 0
```

There are 4 eigenvalue(s) larger than 1 in modulus

for 4 forward-looking variable(s)

The rank condition is verified.

MODEL SIMULATION :

1 - err = 1.1717

Time of iteration :0.096

2 - err = 4.1803e-015

Time of iteration :0.012

Total time of simulation :0.16

Convergency obtained.

The code is attached

bgg_onecons_twogoods_perm.mod (2.25 KB)