Colinear equations problems

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Colinear equations problems

Postby yy1985 » Thu Oct 08, 2015 12:00 pm

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:
Attachments
consumer1.mod
(3.5 KiB) Downloaded 126 times
Last edited by yy1985 on Mon Oct 12, 2015 4:52 am, edited 1 time in total.
yy1985
 
Posts: 27
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Re: Colinear equations problems

Postby jpfeifer » Sat Oct 10, 2015 7:49 am

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
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
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Location: Cologne, Germany

Re: Colinear equations problems

Postby yy1985 » Mon Oct 12, 2015 4:59 am

Dear professor jpfeifer:
Thank you very much for your help! I try to revise my equations.
Best wishes!
yun
yy1985
 
Posts: 27
Joined: Thu Feb 13, 2014 2:56 am


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