I am modeling a new model based on "Gertler and Kiyotaki 2015" for simulating the bank run in the Great recession. I have provided the external SS finder, in addition, I have checked the timing of the model. Unfortunately the model has singularity problem with two unit roots. When I check the problem with
- Code: Select all
model_diagnostics(M_,options_,oo_)
with the large batch of variables and equations. I searched a lot in your previews comments e.g. http://www.dynare.org/phpBB3/viewtopic.php?f=1&t=6478 and http://www.dynare.org/phpBB3/viewtopic.php?f=1&t=6770 then tried to see if equations can provide the value of endogenous variables that the response was yes (I have added in the comment's part that which equation is identical for which variable). I have also checked the Walras law. I was wondering if you could guide me to find the problem? The model is attached here.there is 1 colinear relationships between the variables...
Sincerely,
Leo