Colinear equations problems

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Colinear equations problems

Postby aminapc » Mon Aug 22, 2016 9:30 am

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:
Attachments
Modeltwo.mod
(10.72 KiB) Downloaded 88 times
aminapc
 
Posts: 4
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Re: Colinear equations problems

Postby jpfeifer » Mon Aug 22, 2016 9:55 am

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

Re: Colinear equations problems

Postby aminapc » Mon Aug 22, 2016 6:55 pm

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.
aminapc
 
Posts: 4
Joined: Wed Nov 04, 2015 6:34 pm

Re: Colinear equations problems

Postby xuz » Tue Aug 23, 2016 10:56 pm

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
xuz
 
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