Permanent deterministic simulation

[zsm]

Hello,

I am trying to run a permanent deterministic simulation in Dynare, but I keep getting the following error message: matrix close to singular, so there is no path found by Dynare between the two steady states. The same model is working properly when doing stochastic simulation or a temporary deterministic simulation. Could you please have a look at the attached code and give me some comments?

Thank you!

[jpfeifer]

Your model has a collinearity issue.

Code: Select all

model_diagnostics(M_,options_,oo_)

says

model_diagnostic: the Jacobian of the static model is singular
there is 2 colinear relationships between the variables and the equations
Relation 1
Colinear variables:
Y
L
WF
C
K
I
QD
PHP
QX
PXPstar
QM
PfP
MCF
RER
PROFITF
B
D
UPSILONF
NF
NFE
YYF
PFPP
PfPP
UNEMP
HF
PROBH_F
HCF
YF
YI
KF
KI
LF
LI
PFP
PIP
MCI
PROFITI
QDF
QDI
NIE
NI
YYI
PIPP
HI
PROBH_I
HCI
WI
UPSILONI
IH
If
GH
Gf
PHPP_I
PfPP_I
CH
Cf
CF
CI
taxF
ZZ
FF
FI
RHOhelp
Relation 2
Colinear variables:
i
PIEH
PIEf
PIE
DEP
PIEF
PIEI
Relation 1
Colinear equations
14 17 68

Relation 2
Colinear equations
60

[zsm]

Thank you, I will have a look at it!