Hi, it’s my first time to use dynare and i have problesm when solving transition dynamic path from a steady state and another steady state. I have solved the both steady states already. But when i use perfect_foresight_solver to get simulation path, i get the following warning: Matrix is singular to working precisions. I don’t know how to solve it. I upload my mod file here and please help me. Thanks very much.
main.mod (4.2 KB)
eqm_both_sub.mat (623 Bytes)
The check command shows that your model is unstable:
There are 4 eigenvalue(s) larger than 1 in modulus for 3 forward-looking variable(s)
The rank condition ISN'T verified!
It likely a timing issue.
Yes, I have solved it by adjusting the timing of some variables. Thanks you very much again!