Running my attached mod file, I get the error “One of the eigenvalues is close to
0/0”. I checked the model diagnostics, which say that “no obvious problem is detected” and I’m quite sure that my steady state is correct. But if I reduce the qz_zero_threshold I get that “BK conditions are not satisfied”. Where can the error be?
Thanks a lot for every hint!
bb.mod (4.4 KB)