Two sector Small open economy

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Two sector Small open economy

Postby AC10 » Mon Dec 23, 2013 1:04 pm

Hi everybody, i'm a very first user of dynare, for my master thesis i'm working on the gali-monacelli SOE framework with features that include nontradable goods and public expenditure following Santacreu (2005).
When i run the code in the loglinearized version i face the sequent error:
<<
Error using svd
Input to SVD must not contain NaN or Inf.
Error in rank (line 15)
s = svd(A);
Error in model_diagnostics (line 101)
rank_jacob = rank(jacob);
Error in ModelTirelli (line 296)
model_diagnostics(M_,options_,oo_)
Error in dynare (line 120)
evalin('base',fname) ;
>>
Can someone help me please! Thanks in advance
Iìve attached the mod file
Attachments
ModelTirelli.mod
(2.17 KiB) Downloaded 92 times
AC10
 
Posts: 3
Joined: Mon Nov 25, 2013 11:01 am

Re: Two sector Small open economy

Postby costa » Mon Dec 23, 2013 4:01 pm

I think you got a collinearity problem with your model:
model_diagnostic: the Jacobian of the static model is singular
there is 6 colinear relationships between the variables and the equations
Relation 1
Colinear variables:
y
c
w
p
h
cn
pn
ct
pt
cth
pth
ctf
ptf
s
q
cths
Relation 2
Colinear variables:
c
w
p
h
cn
pn
ct
pt
cth
pth
ctf
ptf
e
s
q
yth
hth
yn
hn
cths
Relation 3
Colinear variables:
c
w
p
h
cn
pn
ct
pt
cth
pth
ctf
ptf
e
s
q
yth
hth
yn
hn
cths
Relation 4
Colinear variables:
c
w
p
h
cn
pn
ct
pt
cth
pth
ctf
ptf
e
s
q
yth
hth
yn
hn
cths
Relation 5
Colinear variables:
e
yn
hn
Relation 6
Colinear variables:
c
w
p
h
cn
pn
ct
pt
cth
pth
ctf
ptf
e
s
q
yth
hth
yn
hn
cths
Relation 1
Colinear equations
1 9 10 11 12 13 14 15 16 18 26 29 30 31
Relation 2
Colinear equations
9 10 11 12 13 14 15 16 18 26 29 30 31
Relation 3
Colinear equations
9 10 11 12 13 14 15 16 18 26 29 30 31
Relation 4
Colinear equations
9 10 11 12 13 14 15 16 18 26 29 30 31
Relation 5
Colinear equations
9 10 11 12 13 14 15 16 18 26 29 30 31
Relation 6
Colinear equations
1 9 10 11 12 13 14 15 16 18 26 29 30 31
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.
>>
I noticed another problem with the parameters, you have to put G_Y=0.2 and
CN_Y=0.4 above gamma=1-G_Y-CN_Y, so that when dynare knows the values of these parameters when the code pass through the parameter gamma.
costa
 
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Joined: Thu Nov 14, 2013 8:09 pm


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