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: