# Second order cannot compute

**URL:** <https://forum.dynare.org/t/second-order-cannot-compute/18178>\
**Category:** Stochastic simulations\
**Created:** [27 May 2021 20:25 UTC](https://forum.dynare.org/t/second-order-cannot-compute/18178 "2021-05-27T20:25:57Z")\
**Posts on this page:** 5\
**Page:** 1

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**Author:** ![Zak](https://forum.dynare.org/letter_avatar_proxy/v4/letter/z/8e7dd6/32.png) [@Zak](https://forum.dynare.org/u/Zak)\
**Post date:** [27 May 2021 20:25 UTC](https://forum.dynare.org/t/second-order-cannot-compute/18178/1 "2021-05-27T20:25:57Z")

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First order looks ok (I think). When I set order to 2, I get the following. Can someone check the attached file and let me know how to go about it? I in the first order I also get LAMBDAR and lambda greater than 5.

[Model1\_DynarF.mod](https://forum.dynare.org/uploads/short-url/4I7lILjY2M3K54hzjBkBjVa5bxs.mod) (8.6 KB)

Warning: Matrix is close to singular or badly scaled. Results may be inaccurate. RCOND =  
1.712298e-21.

> In dyn\_first\_order\_solver (line 292)  
> In stochastic\_solvers (line 262)  
> In resol (line 103)  
> In stoch\_simul (line 92)  
> In Model1\_DynarF.driver (line 473)  
> In dynare (line 293)

At QuasiTriangular.cc:142:Matrix is not quasi-triangular

Error using mexErrCheck (line 41)  
Error encountered in: gensylv.  
Error in dyn\_second\_order\_solver (line 92)  
mexErrCheck(‘gensylv’, err);  
Error in stochastic\_solvers (line 270)  
dr = dyn\_second\_order\_solver(jacobia\_,hessian1,dr,M\_,…  
Error in resol (line 103)  
[dr,info] = stochastic\_solvers(dr,check\_flag,M,options,oo);  
Error in stoch\_simul (line 92)  
[~,info,M\_,options\_,oo\_] = resol(0,M\_,options\_,oo\_);  
Error in Model1\_DynarF.driver (line 473)  
[info, oo\_, options\_, M\_] = stoch\_simul(M\_, options\_, oo\_, var\_list\_);  
Error in dynare (line 293)  
evalin(‘base’,[fname ‘.driver’]) ;

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<div class="post-metadata">

**Author:** ![Zak](https://forum.dynare.org/letter_avatar_proxy/v4/letter/z/8e7dd6/32.png) [@Zak](https://forum.dynare.org/u/Zak)\
**Post date:** [27 May 2021 20:26 UTC](https://forum.dynare.org/t/second-order-cannot-compute/18178/2 "2021-05-27T20:26:40Z")

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@jpfeifer Any clue?

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**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\
**Post date:** [28 May 2021 06:51 UTC](https://forum.dynare.org/t/second-order-cannot-compute/18178/3 "2021-05-28T06:51:39Z")

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The steady state helper is missing.

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**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\
**Post date:** [29 May 2021 18:09 UTC](https://forum.dynare.org/t/second-order-cannot-compute/18178/6 "2021-05-29T18:09:20Z")

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By setting

```auto
check(qz_zero_threshold= 1e-20);

```

you force the model to work at first order despite a fundamental singularity. But the problem reappears at order=2. You need to find out what is going on. For one, I find the zero interest rates strange.

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<div class="post-metadata">

**Author:** ![Zak](https://forum.dynare.org/letter_avatar_proxy/v4/letter/z/8e7dd6/32.png) [@Zak](https://forum.dynare.org/u/Zak)\
**Post date:** [31 May 2021 01:41 UTC](https://forum.dynare.org/t/second-order-cannot-compute/18178/7 "2021-05-31T01:41:19Z")

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Thanks. I will revisit again.