Dynare forums

Dear professor jpfeifer:
When we run the modeltwo.mod file in dynare, the error information is coming up with the following message:
………

model_diagnostic: the Jacobian of the static model is singular
there is 5 colinear relationships between the variables and the equations
Relation 1
Colinear variables:
C_d
C_i
C_fd
C_md
C_fi
C_mi
gama_dc
gama_ic
gama_md
gama_fd
gama_fi
gama_mi
gama_estr
k
i
Y_oil
Y_Fd
L_f
K_f
rer
x
si
T
t_d
y
im
fr
Relation 2
Colinear variables:
C_d
C_fd
C_md
gama_dc
gama_md
gama_fd
Relation 3
Colinear variables:
C_d
C_i
C_fd
C_md
C_fi
C_mi
gama_dc
gama_ic
gama_md
gama_fd
gama_fi
gama_mi
gama_estr
k
i
Y_oil
Y_Fd
L_f
K_f
rer
x
si
T
t_d
y
im
fr
Relation 4
Colinear variables:
C_d
C_i
C_fd
C_md
C_fi
C_mi
gama_dc
gama_ic
gama_md
gama_fd
gama_fi
gama_mi
gama_estr
k
i
Y_oil
Y_Fd
L_f
K_f
rer
x
si
T
t_d
y
im
fr
Relation 5
Colinear variables:
C_d
C_i
C_fd
C_md
C_fi
C_mi
gama_dc
gama_ic
gama_md
gama_fd
gama_fi
gama_mi
gama_estr
k
i
Y_oil
Y_Fd
L_f
K_f
rer
x
si
T
t_d
y
im
fr
Relation 1
Colinear equations
Columns 1 through 18

2 4 6 8 10 12 13 14 15 16 18 19 20 21 27 32 33 34

Columns 19 through 27

35 36 37 38 39 40 49 51 52

Relation 2
Colinear equations
Columns 1 through 18

2 4 6 8 10 12 13 14 15 16 18 19 20 21 27 32 33 34

Columns 19 through 27

35 36 37 38 39 40 49 51 52

Relation 3
Colinear equations
Columns 1 through 18

2 4 6 8 10 12 13 14 15 16 18 19 20 21 27 32 33 34

Columns 19 through 27

35 36 37 38 39 40 49 51 52

Relation 4
Colinear equations
Columns 1 through 18

2 4 6 8 10 12 13 14 15 16 18 19 20 21 27 32 33 34

Columns 19 through 27

35 36 37 38 39 40 49 51 52

Relation 5
Colinear equations
Columns 1 through 18

2 4 6 8 10 12 13 14 15 16 18 19 20 21 27 32 33 34

Columns 19 through 27

35 36 37 38 39 40 49 51 52

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.
Error using print_info (line 42)
Blanchard Kahn conditions are not satisfied: no stable equilibrium

Error in stoch_simul (line 98)
print_info(info, options_.noprint, options_);

Error in modeltwo (line 841)
info = stoch_simul(var_list_);

Error in dynare (line 180)
evalin('base',fname) ;


In generally, how do we to solve the Colinear equations problems?

Thank you much for your help and support!
The mod file as follows:

Just the usual generic advice: start with a simple(r) version of the model and see where the problem comes from. With a model that big, there is not much hope of debugging.

jpfeifer wrote:Just the usual generic advice: start with a simple(r) version of the model and see where the problem comes from. With a model that big, there is not much hope of debugging.

Hi Prof. Pfeifer,

Thank you so much for your reply.

Hi,
my suggestion may goes into the wrong direction, but you might check the following:

1. The following endogenous variables aren't present at the current period in the model:
K_f

2. Some of the collinearities may come from the existence of unit roots, which is treated by "model_diagnostics" as an collinearity problem even your BK and rank conditions verified.

eigenvalues could be found at: oo_.dr.eigval