The generalized Schur (QZ) decomposition failed


I am solving a nonlinear DSGE model at the first order accuracy. The steady state is found by dynare solver, but I got the following error message:

??? Error using ==> print_info at 36
The generalized Schur (QZ) decomposition failed. For more information, see the documentation for Lapack function
dgges: info=34, n=32

Error in ==> stoch_simul at 78
print_info(info, options_.noprint);

Error in ==> gnkpc_nl6_test at 504
info = stoch_simul(var_list_);

Error in ==> dynare at 120
evalin(‘base’,fname) ;

I tried the AIM solver, and it didn’t work either. Can anyone help me find out what it is going on?

Thanks, see attached mod file.


This error is probably linked to some undeterminacy or instability in your model. Try to change the paremeterization.