Steady state: Matrix is singular to working precision

Dear all,

I am trying to run a simple model and I have tried several different values. However, I get an error

Warning: Matrix is singular to working precision. 

Residuals of the static equations:

Equation number 1 : 0
Equation number 2 : 0
Equation number 3 : 0
Equation number 4 : 0.87516
Equation number 5 : 0
Equation number 6 : -1.4145
Equation number 7 : 0
Equation number 8 : 0
Equation number 9 : 0
Equation number 10 : 0.86616
Equation number 11 : 0
Equation number 12 : -2
Equation number 13 : 0.036468
Equation number 14 : 0.123
Equation number 15 : 0
Equation number 16 : 0


Error using print_info (line 83)
Impossible to find the steady state. Either the model doesn't have a steady
state, there are an infinity of steady states, or the guess values are too
far from the solution

Error in steady (line 104)
    print_info(info,options_.noprint, options_);

Error in untitled2 (line 241)
steady;

Error in dynare (line 235)
evalin('base',fname) ;

Can someone help me where I am making a mistake? I have included either resid or resid(1). I have attached my codes.
ssicov.m (851 Bytes) untitled2.mod (2.1 KB)

Are you sure your model has a unique steady state?

Hello Professor Pfeifer,

Thank you for your reply. How do I make sure my model has a unique steady state?

I am guessing you have made a mistake in deriving the temporary equilibrium of your model. For example, lines 61-66 are

//6
rm = THETAM/(THETAM-1)*r;
//7
rd = THETAD/(THETAD-1)*r;
//8
rm-GAMMAE*rd = (1-GAMMAE)*r;

Substituting 6 and 7 into 8 implies

THETAM/(THETAM-1) -GAMMAE*THETAD/(THETAD-1) - (1-GAMMAE) = 0

But you calibrate each of the parameters THETAM, THETAMD, and GAMMAE as 2, -5, and 0.9 respectively, which means this equation will never be true.

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Thank you so much for your help!