Third-order approximations and pruning

Dynare help (legacy posts)
1

Dear forum,

I am trying to run a DSGE with an uncertainty shock, and hence want to obtain the third-order approximations. I have to use pruning otherwise the model will explode.
When I run my code, I get the following message:

“Warning: Matrix is close to singular or badly scaled. Results may be inaccurate. RCOND = 5.447963e-22.”

How to come around this problem?! I want to obtain GIRF to be able to analyze the model. I would really appreciate any help!
I have attached the .mod file if anyone care to take a look.

The best regards,
Bastrup
NWSomegaN.mod (10.6 KB)

2

Please let me know, if further information is needed before any answer can be provided!
I have checked that all shocks do have a variance, but I actually do not know where to see the result of the covariance matrix.

Any help will truly be appreciated.

/Basse