Perfect_foresight_solver cannot work

Dear all,
I built a two sector model and try to simulate the model under the deterministic case. The model run well under the stochastic case. However, perfect_foresight_solver always fail under various parameter specifications. The results show that,
"
There are 15 eigenvalue(s) larger than 1 in modulus
for 15 forward-looking variable(s)

The rank condition is verified.

MODEL_DIAGNOSTICS: No obvious problems with this mod-file were detected.
Perfect foresight solution found.

Total computing time : 0h00m00s

Largest absolute residual at iteration 1: 0.016

Largest absolute residual at iteration 2: 0.001

Largest absolute residual at iteration 3: 0.000

Largest absolute residual at iteration 4: 0.000

Largest absolute residual at iteration 1: 0.055

Largest absolute residual at iteration 2: 0.395

Largest absolute residual at iteration 3: 0.193

Largest absolute residual at iteration 4: 0.100

Largest absolute residual at iteration 5: 0.215

Largest absolute residual at iteration 6: 0.157

Largest absolute residual at iteration 7: 0.087

Largest absolute residual at iteration 8: 0.032

Largest absolute residual at iteration 9: 0.044

Largest absolute residual at iteration 10: 0.530

Largest absolute residual at iteration 11: 0.246

Largest absolute residual at iteration 12: 0.120

Largest absolute residual at iteration 13: 0.083

Largest absolute residual at iteration 14: 0.021

Largest absolute residual at iteration 15: 0.042

Largest absolute residual at iteration 16: 0.019

Largest absolute residual at iteration 17: 0.059

Largest absolute residual at iteration 18: 0.080

Largest absolute residual at iteration 19: 0.023

Largest absolute residual at iteration 20: 1.222

Largest absolute residual at iteration 21: 0.545

Largest absolute residual at iteration 22: 0.256

Largest absolute residual at iteration 23: 0.134

Largest absolute residual at iteration 24: 0.038

Largest absolute residual at iteration 25: 2602.732

Largest absolute residual at iteration 26: 957.669

Largest absolute residual at iteration 27: 352.398

Largest absolute residual at iteration 28: 129.719

Largest absolute residual at iteration 29: 47.795

Largest absolute residual at iteration 30: 17.656

Largest absolute residual at iteration 31: 6.564

Largest absolute residual at iteration 32: 2.478

Largest absolute residual at iteration 33: 0.972

Largest absolute residual at iteration 34: 0.419

Largest absolute residual at iteration 35: 0.206

Largest absolute residual at iteration 36: 0.082

Largest absolute residual at iteration 37: 1.080

Largest absolute residual at iteration 38: 0.454

Largest absolute residual at iteration 39: 0.200

Largest absolute residual at iteration 40: 0.103

Largest absolute residual at iteration 41: 437073816890984.750

Warning: Matrix is close to singular values or poorly scaled. Results may be inaccurate.
RCOND = 2.545565e-20。

位置:sim1>lin_solve (第 236 行)
位置: sim1 (第 165 行)
位置: my_extended_path (第 15 行)
位置: sim_two_sim (第 32 行)
位置: sim_figs2_3 (第 9 行)"

I am using Dynare 4.4.3. and the main program is sim_two_sim.
NL_Rotem_sim_steadystate.m (7.9 KB)
sim_two_sim.m (1.6 KB)
sim1.m (10.6 KB)
NL_Rotem_sim.mod (17.3 KB)
my_extended_path.m (1.2 KB)

  1. Please upgrade to a newer Dynare version using the attached steady state file:
    NL_Rotem_sim_steadystate.m (7.7 KB)
  2. I think your approach is conceptually wrong. You are simulating with shocks in every single period. That leaves no time at the end of the simulation to return to the terminal condition for the forward-looking variables (the steady state).