Please, I need help with the following error message:

??? Error using ==> svd

Input to SVD must not contain NaN or Inf.

Error in ==> cond at 40

s = svd(A);

Error in ==> solve1 at 117

elseif cond(fjac) > 1/sqrt(eps)

Error in ==> dynare_solve at 110

[x,info]=solve1(func,x,j1(r(i):r(i+1)-1),j2(r(i):r(i+1)-1),jacobian_flag,varargin{:});

Error in ==> steady_ at 69

[oo_.steady_state,check] = dynare_solve([M_.fname '*static’],…
Error in ==> steady at 52
steady*;

Error in ==> r_h at 193

steady;

Error in ==> dynare at 102

evalin(‘base’,fname) ;

Here is my code:

// stochastic model

//endogenous variables

var k1 k2 k c h h1 h2 alpha_k alpha_h Delta eta y i r w lambda z1 z2 B1 pp

k1_k h1_h k_h;

//exogenous variables

varexo e1, e2;

//model´s parameters

parameters beta delta theta phi omega Bh rho1 rho2 gamma sigma1 sigma2;

beta = 0.991;

delta = 0.025;

theta = 0.360;

phi = 0.975;

omega = 0.0015;

Bh = 2.860;

rho1 = 0.950;

rho2 = 0.950;

gamma = 0.000;

sigma1 = 0.00712;

sigma2 = 0.00712;

// model equations:

model;

h = h1+h2;

k = k1+k2;

alpha_k = k1/k;

alpha_h = h1/h;

pp = omega*(lambda^2)/4;

eta = alpha_k*omega*(lambda/2);

Delta = z1*alpha_k^theta*alpha_h^(1-theta)*(1-theta*pp)

+ z2*(1-alpha_k)^(theta)*(1-alpha_h)^(1-theta) phi;*k-i;

y = k^thetah^(1-theta)Delta - keta;

i= k-(1-delta)k(-1);

c+i = y;

c = wh+r

w = Bh

*c;*

(1/c) = beta(1/c(+1))

(1/c) = beta

*(r(+1)+1-delta);*

B1 = omega/(2-lambda(1+omega));

B1 = omega/(2-lambda

B1*(1-lambda/2) = omega*((1+lambda

*B1)/2);*

r = B1(1 - (lambda^2)

r = B1

*(omega/4)) - lambda*(omega/2) + theta

*phi*k2^(theta-1)

*h2^(1-theta);*

lambda = 2sqrt(((phi

lambda = 2

*z2)/((1+omega)*

w = (1-theta)h2^(-theta);

*z1))*(h2/h1)^(1-theta));w = (1-theta)

*z2*k2^thetak1 = ((omega/((2-lambda*(1+omega))

*theta*z1))^(1/(theta-1)))

*h1;*

z1 = rho1z1(-1)+e1;

z1 = rho1

z2 = rho2*z2(-1)+e2;

k1_k = k1/k;

k_h = k/h;

end;

// initial values or guesses/

initval;

y = 1.1;

B1 = 1;

k = 11.487;

k1 = 5.6;

k2 = 5.6;

k1_k = 0.4895;

h1=0.1246;

h2=0.18;

h = 0.3046;

k_h =37.7;

c = 0.8155;

i = 0.2872;

w = 2;

r = 0.03;

lambda=1.5;

z1 = 1;

z2 = 1;

e1 = 0;

e2 = 0;

end;

/* adding steady will take initval as guesses, then

approximate steady s.s. and do simulations thereafter */

steady;

solve_algo = 0;

// performs check: # eigenvalues >1 = # exogenous variables

check;

/* introducing shocks: adds shock ´´e´´ with variance equals

to sigma^2 */

shocks;

var e1 = sigma1^2;

var e2 = sigma2^2;

end;

// simulation: stochastic

stoch_simul(periods=2100);