Dynare forums

Hi every one,
how is it possible that there is colinearity between bunch of variables, and there is only one colinear equation?

Coud you post an example?

Here is my two country model I have told you about,
Thanks a lot.

The reason is numerical. A computer always has to make a decision what to take as 0, even if it is not exactly 0. If you look into model_diagnostics, you will see that some choices have to be made what to count as singular as opposed to close to singular. The output of model_diagnostics should thus be seen as providing guidelines what to look at. You should not interpret it as a strict analytical statement.

Thanks,
I am removing the rigidities to find the problem.