Solve algorithm

Dynare help (legacy posts)
1

Hi all,

I have a problem with simulating my model. The dynare (3) successfully finds the steady state, however, only by using the solve_algo=3. The simulation of transferring from one steady state to the other is not successful:
(Warning: Matrix is close to singular or badly scaled.
Results may be inaccurate. RCOND = 1.001041e-017.).
Could it be a problem with the solve algorithm it uses? Can I change it?

Many thanks in advance

2

Hi,

Did you try with Dynare version 4? Also with Dynare version 4 there is another algorithm described on our wiki:

dynare.org/DynareWiki/FastDeterministicSimulation

Best, Stéphane.

[quote=“nz”]Hi all,

I have a problem with simulating my model. The dynare (3) successfully finds the steady state, however, only by using the solve_algo=3. The simulation of transferring from one steady state to the other is not successful:
(Warning: Matrix is close to singular or badly scaled.
Results may be inaccurate. RCOND = 1.001041e-017.).
Could it be a problem with the solve algorithm it uses? Can I change it?

Many thanks in advance[/quote]