Warning: Matrix is close to singular or badly scaled. Results may be inaccurate. RCOND = 6.025920e-49

Stochastic simulations
1

Hi
I am a new user of Dynare and Trying to simulate a medium scale DSGE model. but getting the warning message Warning: Matrix is close to singular or badly scaled. Results may be inaccurate. RCOND= 6.025920e-49. Though the results are being generated by dynare. But the warning contains the line that these may be incorrect so what can be done to fix this problem.

Thanks in advance
newa.mod (9.9 KB)

2

Check your model again. It is supposed to be linear, but the steady states of the equations are not 0.

3

Thank you so much for the guidance.