Dynare forums

Posted: **Fri Jan 16, 2015 8:59 pm**

hello everyone
I have a problem with my dynare code
i write on dynare the equations from Ruslan Aliyev's paper " Monetary Policy in Resource-Rich" (page 41) with parameters (page 19) and initial value (page 21) but when i run the code there is a error message :

??? Error using ==> print_info at 74
Impossible to find the steady state. Either the model doesn't have a steady state, there
are an infinity of steady states, or the guess values are too far from the solution

Error in ==> steady at 92
print_info(info,options_.noprint, options_);

Error in ==> code at 241
steady;

Error in ==> dynare at 180
evalin('base',fname) ;
I am looking for help
thanks

Posted: **Sat Jan 17, 2015 1:24 pm**

The unstable version of Dynare is able to find a steady state. But there is a collinearity issue in your model. Upon running model_diagnostics, I get

MODEL_DIAGNOSTICS: The Jacobian of the static model is singular
MODEL_DIAGNOSTICS: there is 3 colinear relationships between the variables and the equations
Relation 1
Colinear variables:
c
cm
cn
e
p
pm
pn
m
l
lm
lln
km
kn
w
r
phi
s
y
ym
yn
Relation 2
Colinear variables:
c
cm
cn
e
p
pm
pn
m
l
lm
lln
km
kn
w
r
phi
s
y
ym
yn
Relation 3
Colinear variables:
c
cm
cn
e
p
pm
pn
m
l
lm
lln
km
kn
w
r
phi
s
y
ym
yn
Relation 1
Colinear equations
13 14 15

Relation 2
Colinear equations
14 15

Relation 3
Colinear equations
13 14 15
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.

Posted: **Sat Jan 17, 2015 3:25 pm**

thank you professor,
so, what should i do.

Posted: **Sat Jan 17, 2015 3:41 pm**

Find the source of the problem. Unfortunately, this is hard. As the error message says, usually you have selected one redundant equation from the paper while omitting another one that should take its place. You need to find the redundant and the missing equation.

Posted: **Sat Jan 17, 2015 5:44 pm**

thank you professor
I will consider your comments

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