Hello every body ,

First, I am trying to simulate a dynamic model using dynare. It is a simple model. I can simulate it with a type of error message: “Warning: Matrix is close to singular or badly scaled Results May be Inaccurate”. Please, can you help me to resolve this error.

Second, I use dynare to resolve a system of first order equation. One of this endogenous variables of my model has a value of zero in steady state, so one of model equations holds with Khun-Tucker condition in steady state (Not interior solution ). Is it possible to use Khun-Tucker formulation in Dynare-matlab ?

I hope that you answer me quickly. Thank you for your help.