generalized Schur (QZ) decomposition failed

[monsoon]

Hi,

I am working on a model which produces the following output which I am finding difficult to interpret

"Error using print_info (line 37)
The generalized Schur (QZ) decomposition failed. For more information, see the documentation for Lapack function dgges: info=51,
n=49. You can also run model_diagnostics to get more information on what may cause this problem."

On running model_diagnostics, I am getting

model_diagnostic: the Jacobian of the static model is singular
there is 3 colinear relationships between the variables and the equations
Relation 1
Colinear variables:
n_p
D
w_p
t_p
n_i
w_i
b
t_i
r_b
r_tild
h
W_p
W_i
r_r
b_r
q_h
t_r
mu_r
R_tild
K
B
npa_rat
j_b
AUX_ENDO_LAG_44_1
Relation 2
Colinear variables:
n_p
D
w_p
t_p
n_i
w_i
b
t_i
r_b
r_tild
h
W_p
W_i
r_r
b_r
q_h
t_r
mu_r
R_tild
K
B
npa_rat
j_b
AUX_ENDO_LAG_44_1
Relation 3
Colinear variables:
n_p
D
w_p
t_p
n_i
w_i
b
t_i
r_b
r_tild
h
W_p
W_i
r_r
b_r
q_h
t_r
mu_r
R_tild
K
B
npa_rat
j_b
AUX_ENDO_LAG_44_1
Relation 1
Colinear equations
3 32 33 35 36 44 52 53 55

Relation 2
Colinear equations
3 32 33 35 36 44 52 53 55

Relation 3
Colinear equations
3 32 33 35 36 44 52 53 55

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.


Please help me solve this problem. The mod file is attached.

[jpfeifer]

The big problem is a timing issue with capital as:

Code: Select all

MODEL_DIAGNOSTICS: The following endogenous variables aren't present at the current period in the model:
K               


Additionally, you should not use a max()-operator with stochastic simulations. Results will not be reliabe in this case.

[monsoon]

Thank you but I declared K (bank capital) as a predetermined variable in my model.

[jpfeifer]

Regardless of whether a variable is predetermined or not, it has to appear contemporaneously somewhere in the model. Therefore, your timing must be wrong.