I’m trying to use the option
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.