Dynare forums

Posted: **Mon Sep 22, 2014 8:05 am**

hi jpfeifer ！
I've tried to built a model with two kinds of househould which differentiate when they allocate the bonds assets, but the model does not work in software, Can you help me with it?

Posted: **Mon Sep 22, 2014 12:52 pm**

The model is defined in the file

Posted: **Wed Sep 24, 2014 12:03 pm**

model_diagnostics clearly says

MODEL_DIAGNOSTICS: The Jacobian of the static model is singular
MODEL_DIAGNOSTICS: there is 6 colinear relationships between the variables and the equations
Relation 1
Colinear variables:
bl
bl1
bl2
Relation 2
Colinear variables:
bs
bs1
bs2
Relation 3
Colinear variables:
bs
bs1
bs2
Relation 4
Colinear variables:
bs
bs1
bs2
bl
bl1
bl2
Relation 5
Colinear variables:
m1
m2
lam1
lam2
c1
c2
k1
k2
bs
bs1
bs2
h1
h2
Relation 6
Colinear variables:
m1
m2
lam1
lam2
c1
c2
k1
k2
bs
bs1
bs2
h1
h2
Relation 1
Colinear equations
2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 22 25

Relation 2
Colinear equations
2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 25

Relation 3
Colinear equations
2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 25

Relation 4
Colinear equations
21

Relation 5
Colinear equations
2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 22 25

Relation 6
Colinear equations
2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 22 25

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

Are you sure that your model uniquely defines what seems to be a portfolio problem?

You also might want to check why the detected steady state values do not correspond to the one you defined as starting values.

Posted: **Sat Oct 25, 2014 6:50 am**

Thanks for your help！ In my model, I defined two kinds of household which are only differentiated by the parameters of adjust cost in bonds. I guess the problem is caused by this , But I am not sure and don't know how to fix it! I will be grateful if you I help me to check the model

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