Hello,

I am trying to simulate the path of an economy from an initial steady state to another steady state.

I am working with a non-linear model with sticky information.

These are the files:

Non_linear_model.pdf (107.5 KB)

main_nonlin_disinf.m (3.0 KB)

nonlin_stickyinfo_disinf.mod (6.0 KB)

Both the initial and final steady state fit each of the equations in the model. However, Dynare throws me the error that I am copying at the end.

Is there a way in which I can solve this? I have worked with perfect foresight simulations in non-linear models before but this si the first time that this problem appears

Thank you in advance for your time,

Alternative start point also failed with gmres, using the (SLOW) Moore-Penrose Pseudo-Inverse.

Error using svd

Input to SVD must not contain NaN or Inf.

Error in pinv (line 18)

[U,S,V] = svd(A,‘econ’);

Error in sim1>lin_solve_robust (line 300)

x = pinv( full( A ) ) * b;

Error in sim1 (line 163)

dy = -lin_solve_robust( A, res, verbose );

Error in perfect_foresight_solver_core (line 94)

sim1(oo_.endo_simul, oo_.exo_simul,

oo_.steady_state, M_, options_);

Error in perfect_foresight_solver (line 61)

oo_ = perfect_foresight_solver_core(M_,options_,oo_);

Error in nonlin_stickyinfo_disinf (line 577)

perfect_foresight_solver;

Error in dynare (line 223)

evalin(‘base’,fname) ;

Error in main_nonlin_disinf (line 105)

dynare nonlin_stickyinfo_disinf