Dear all,
I am duelling with a two sector model,
after computing the steady state, Dynare produces the following error message:
Warning: Matrix is singular to working precision.
In dr1 at 139
In resol at 49
In check at 18
In durnondur at 140
In dynare at 26
??? Error using ==> print_info
The model doesn’t determine the current variables uniquely
Is there a way to understand what kind of problem could this be and how to fix it?
Thanks in advance.
Alex
What the message means is that, given expectations and past value of the variables, it isn’t possible to determine the current value of the endogenous variables uniquely.
In a two sector model, I would suspect that two equations are linear combination of each other or that you have a redundant market clearing condition.
Best
Michel
Dear Michel,
Thank you for your answer,
I’ll try to find any mistake.
Thank you again,
Alex
[quote=“MichelJuillard”]What the message means is that, given expectations and past value of the variables, it isn’t possible to determine the current value of the endogenous variables uniquely.
In a two sector model, I would suspect that two equations are linear combination of each other or that you have a redundant market clearing condition.
Best
Miche[/quote]