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Colinear equations problems

PostPosted: Thu Oct 08, 2015 12:00 pm
by yy1985
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:

Re: Colinear equations problems

PostPosted: Sat Oct 10, 2015 7:49 am
by jpfeifer
Judging from the variables that show up, the allocation of capital between the two sectors is not unique as the capital stocks are perfect substitutes. In this case the collinearity may be a model feature

Re: Colinear equations problems

PostPosted: Mon Oct 12, 2015 4:59 am
by yy1985
Dear professor jpfeifer:
Thank you very much for your help! I try to revise my equations.
Best wishes!
yun