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Posted: **Sun Nov 24, 2013 12:03 pm**

Hi All:

When I am running my .mod file on Matlab the following message keeps showing up: "The Jacobian matrix evaluated at the steady state contains elements that are not real or are infinite" I attached a copy of my file.

Thanks in Advance

Posted: **Thu Nov 28, 2013 10:55 am**

There is a collinearity problem:

model_diagnostic: the Jacobian of the static model is singular
there is 2 colinear relationships between the variables and the equations
Relation 1
Colinear variables:
G
Relation 2
Colinear variables:
L_H
L_SM
RE
X
L_T
Relation 1
Colinear equations
2 3 11 12

Relation 2
Colinear equations
1

The presence of a singularity problem typically indicates that there is one
redundant equation entered in the model block, while another non-redundant equation
is missing. The problem often derives from Walras Law.

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