Jacobian is not evaluated at the steady state!

Hi all,
I’m trying to use the option linear_approximation in perfect_foresight_solver. But it repeatedly reports the following error:

sim1_linear (line 118)
Jacobian is not evaluated at the steady state!

Why is that? I also use stack_solve_algo=0 following the guidance of reference manual.

I cannot reproduce the problem in Dynare 4.6.1. Here is the updated steady state file for that version.
ffmod_steadystate.m (5.0 KB)
But the simulation still does not solve.

Thank you Professor! I’ll update Dynare as soon as possible.

But I don’t understand. I thought the system could be easily solved under linear approximation, as long as BK condition is satisfied. Why the simulation still doesn’t solve?

When I run model_diagnostics I get that there is a singularity issue. That might explain it.

Thank you professor!!!