The generalized Schur (QZ)


When i’m trying to run my Dynare code i get the following error:

Error using print_info at 36
The generalized Schur (QZ) decomposition failed. For more information, see the documentation for Lapack function
dgges: info=20, n=20

Error in check at 76
print_info(info, options.noprint);

Error in linear_u at 312
oo_.dr.eigval = check(M_,options_,oo_);

Error in ==> dynare at 235
evalin(‘base’,fname) ;

What does it mean ? is it a colinearity problem or other else ? Can you help me please?
model.mod (7.59 KB)

Try to execute the Matlab code before the model block (you will need to replace the // comments with % comments). When doing so, you will see that when computing

I_ss = delta*K_ss; //(6)
that K_ss has not yet been defined.

Thanks for your rapid reply.
I just need to replace the // comments with % comments ? I did that but nothing seems change.
modela.mod (7.83 KB)

The replacing is only for you to be able to execute the code in Matlab by using “Evaluate selection” or F9. You need to fix the circular definition of your steady state values before the model block.