Dear professor jpfeifer:
When we run the consumer1.mod file in dynare, this model is satisfied with the Blanchard Kahn conditions.
But when we use the command of model_diagnostics(M_,options_,oo_),there is a trouble . The error information is coming up with the following message:
………
There are 5 eigenvalue(s) larger than 1 in modulus
for 5 forward-looking variable(s)
The rank condition is verified.
……
Total computing time : 0h00m15s
After use the command of model_diagnostics(M_,options_,oo_)
>> model_diagnostics(M_,options_,oo_)
model_diagnostic: the Jacobian of the static model is singular
there is 1 colinear relationships between the variables and the equations
Colinear variables:
i1
i2
k1
k2
Colinear equations
1 3
In generally, how do we to solve the Colinear equations problems?
Thank you much for your help and support!
The mod file as follows: