Issue with Eigenvalues

Hello everyone, I am trying to simulate the attached model (for my thesis), but when I run it, I obtain the following error message:

One of the eigenvalues is close to 0/0 (the absolute value of numerator and denominator is smaller than 0.0000!
** If you believe that the model has a unique solution you can try to reduce the value of qz_zero_threshold.**

I do not understand if there is likely to be a problem in the equations (maybe I made some
paper.mod (6.0 KB)
wrong loglinearisation) or in the Steady State…

Thak you for the help!

There is most likely a problem with the sectoral setup, but it’s hard to tell. The general advice applies. Try to simplify.