I am trying to run a simple one good two country model. I do not understand what am I doing wrong. I have initialized the parameters and declared everything as it is supposed to be but I get the following message when I try to run the model. Do you know what am I missing? Thank you.

Warning: Matrix is singular to working precision.

In evaluate_steady_state (line 85)

In steady_ (line 54)

In steady (line 81)

In OECM (line 254)

In dynare (line 180)

Residuals of the static equations:

Equation number 1 : NaN

Equation number 2 : NaN

Equation number 3 : NaN

Equation number 4 : NaN

Equation number 5 : NaN

Equation number 6 : NaN

Equation number 7 : NaN

Equation number 8 : NaN

Equation number 9 : NaN

Equation number 10 : NaN

Equation number 11 : NaN

Equation number 12 : NaN

Equation number 13 : NaN

Equation number 14 : NaN

Equation number 15 : NaN

Equation number 16 : NaN

Equation number 17 : NaN

Equation number 18 : 0

Error using print_info (line 80)

The steady state contains NaN or Inf

Error in steady (line 92)

print_info(info,options_.noprint, options_);

Error in OECM (line 254)

steady;

Error in dynare (line 180)

evalin(‘base’,fname) ;

OECM.mod (1.76 KB)