Dear all,

I have simulated a deterministic model in Dynare. The model gives a very close approximation of the steady state values I had computed by hand, but when the simulation starts Matlab produces the message you find below. I would just like to know whether this just means that the model does not converge or whether there is other information contained in this.

Many Thanks!

Best,

Ansgar

Here is the text from the command window which follows the steady state values:

"MODEL SIMULATION :

1 - err = 0.97711

Time of iteration :0.828

2 - err = 5.9266

Time of iteration :0.734

3 - err = 397395310143842490000000000000000

Time of iteration :1.125

Warning: Matrix is close to singular or badly scaled.

Results may be inaccurate. RCOND = 3.357552e-105.

In sim1 at 65

In simul at 58

In modelsteady1 at 180

In dynare at 49"

This is followed by the following block:

"Warning: Matrix is singular to working precision.

In sim1 at 73

In simul at 58

In modelsteady1 at 180

In dynare at 49"

This block is infinetely repeated until I stop the process by ctrl c. Matlab then adds the following lines:

"Error in ==> sim1 at 74

end

Error in ==> simul at 58

sim1 ;

Error in ==> modelsteady1 at 180

simul(oo_.dr);

Error in ==> dynare at 49

evalin(‘base’,fname) ;"