I am wondering if this is a problem, but I am getting non-zero residuals in my model. But the residuals are really close to zero, and the model runs without an issue, and the results are more or less as expected.
Here are the results:
Residuals of the static equations:
Equation number 1 : 5.1986e-007
Equation number 2 : 0
Equation number 3 : -1.6621e-006
Equation number 4 : 7.311e-007
Equation number 5 : 0
Equation number 6 : -6.5865e-007
Equation number 7 : 1.2538e-006
I have placed the resid command after “steady;” in dynare, so I think these are the final steady state residuals. I am not sure if I should be worried or not.
Putting in “check” after this gives me:
There are 3 eigenvalue(s) larger than 1 in modulus
for 3 forward-looking variable(s)
The rank condition is verified.
I am not sure if this is really an issue. Any clarification would be great. PFA the mod file.
detrended_model.mod (1.3 KB)