Problems with different matlab versions when running dynare

Hi !

When running the attached program using dynare 4.1.0, I get different results when running it in Matlab 2007b and 2010a. Specifically, when running it in 2007b the model is solved, while in 2010b I get the error message “Blanchard Kahn conditions are not
satisfied: indeterminacy”.

Does anyone have an idea what causes this difference?

Many thanks!
test2.mod (6.29 KB)

Please upgrade to the latest version of Dynare and tell us if you can still reproduce the problem.

I still get different answers when running the two matlab versions. However, a difference compared to before is that version 7.5 now indicates that there is some kind of problem :

“Warning: Matrix is close to singular or badly scaled.
Results may be inaccurate. RCOND =
5.427874e-020.”

but proceeds and solves the model (computing transtition function etc). The more recent version gives a similar message

" Results may be inaccurate. RCOND =
5.427874e-020. "

and then breaks complaining about Blanchard Kahn.

Note that this seems to depend on the model. I changed the calibration (and discovered an error and modified the model a little) and the problem vanished, so my problem has been solved.

Many thanks for the help

Andreas