Two country model eigenvalues close to 0/0

autarky.mod (3.6 KB)

Hello I’m working on a two country model with an enforcement constraint similar to Jermann and Quadrini (2012). I’ve found the steady state and I’m getting the typical error as in my title. At this time I just wrote the code in terms of levels. Any advice? Thanks.

Please use the most recent Dynare version. In Dynare 4.6.3 you will get

Error: x not used in the model block
Error: xstar not used in the model block

Thank you so much Dr. Pfeifer.