diff --git a/matlab/DsgeLikelihood.m b/matlab/DsgeLikelihood.m
index e2099fca1ca4c3ba7a29a19a528a8ebc594a3e84..c282e500ff445f1c13cd4aed18bcb345d2354548 100644
--- a/matlab/DsgeLikelihood.m
+++ b/matlab/DsgeLikelihood.m
@@ -259,7 +259,7 @@ Model.H = H;
 [T,R,SteadyState,info,Model,DynareOptions,DynareResults] = dynare_resolve(Model,DynareOptions,DynareResults,'restrict');
 
 % Return, with endogenous penalty when possible, if dynare_resolve issues an error code (defined in resol).
-if info(1) == 1 || info(1) == 2 || info(1) == 5 || info(1) == 22 || info(1) == 24
+if info(1) == 1 || info(1) == 2 || info(1) == 5 || info(1) == 7 || info(1) == 22 || info(1) == 24
     fval = penalty+1;
     info = info(1);
     exit_flag = 0;
diff --git a/matlab/dr1.m b/matlab/dr1.m
index 2058ebef3b520c418fb61d15e52c13502551d5a0..f717c03cb0be5d170b0e3ce12c886fea58ea4d06 100644
--- a/matlab/dr1.m
+++ b/matlab/dr1.m
@@ -290,9 +290,13 @@ else  % use original Dynare solver
     mexErrCheck('mjdgges', err);
 
     if info1
-        info(1) = 2;
-        info(2) = info1;
-        info(3) = size(e,2);
+        if info1 == -30
+            info(1) = 7;
+        else
+            info(1) = 2;
+            info(2) = info1;
+            info(3) = size(e,2);
+        end
         return
     end
 
diff --git a/matlab/print_info.m b/matlab/print_info.m
index a6784396f964f35426e510211aa7a5a6338f136d..015b2003eec93e5f692a05ac9c427e9195b80e2e 100644
--- a/matlab/print_info.m
+++ b/matlab/print_info.m
@@ -49,7 +49,7 @@ if ~noprint
         error(['The Jacobian matrix evaluated at the steady state contains elements ' ...
                'that are not real or are infinite'])
       case 7
-        error(['One of the eigenvalues is is close to 0/0 (the absolute ' ...
+        error(['One of the eigenvalues is close to 0/0 (the absolute ' ...
                'value of numerator and denominator is smaller than 1e-6)'])
       case 19
         error('The steadystate file did not compute the steady state')
diff --git a/mex/sources/mjdgges/mjdgges.c b/mex/sources/mjdgges/mjdgges.c
index e42b8234cf9d1d96d6c8356eeceaef07c5916bc6..bbd91a40c1b74908266d788f58eb2bd38340ead1 100644
--- a/mex/sources/mjdgges/mjdgges.c
+++ b/mex/sources/mjdgges/mjdgges.c
@@ -60,7 +60,15 @@ mjdgges(double *a, double *b, double *z, double *n, double *sdim, double *eval_r
   pei = eval_i;
   for (per = eval_r; per <= &eval_r[i_n-1]; ++per)
     {
-      *per = *par / *pb;
+      if ((fabs(*par) > 1e-6) || (fabs(*pb) > 1e-6)) 
+	*per = *par / *pb;
+      else
+	{
+	  /* the ratio is too close to 0/0;
+	     returns specific error number only if no other error */
+	  if (i_info == 0)
+	    *info = -30;
+	}
       if (*pai == 0.0 && *pb == 0.0)
         *pei = 0.0;
       else