Hello everyone. I got stuck in this error for a few days. I have searched the forum and seen some possible solutions. I think there is no timing problem and redundant equations.

Error using print_info (line 42)

Blanchard Kahn conditions are not satisfied: no stable equilibrium

Error in stoch_simul (line 100)

print_info(info, options_.noprint, options_);

Error in c (line 371)

info = stoch_simul(var_list_);

Error in dynare (line 235)

evalin(‘base’,fname) ;

And the model diagnostics is as follow. Thanks in advance for any advice!

model_diagnostics(M_,options_,oo_)

MODEL_DIAGNOSTICS: The Jacobian of the static model is singular

MODEL_DIAGNOSTICS: there is 1 colinear relationships between the variables and the equations

Colinear variables:

y

yj

yf

m

x

c

l

b

bf

q

ca

lamda

gdp

Colinear equations

4 9 19 21

MODEL_DIAGNOSTICS: The singularity seems to be (partly) caused by the presence of a unit root

MODEL_DIAGNOSTICS: as the absolute value of one eigenvalue is in the range of ±1e-6 to 1.

MODEL_DIAGNOSTICS: If the model is actually supposed to feature unit root behavior, such a warning is expected,

MODEL_DIAGNOSTICS: but you should nevertheless check whether there is an additional singularity problem.

MODEL_DIAGNOSTICS: The presence of a singularity problem typically indicates that there is one

MODEL_DIAGNOSTICS: redundant equation entered in the model block, while another non-redundant equation

MODEL_DIAGNOSTICS: is missing. The problem often derives from Walras Law.

EIGENVALUES:

Modulus Real Imaginary

```
4.989e-15 4.989e-15 0
0.4905 0.4905 0
0.5 0.5 0
0.95 0.95 0
0.98 0.98 0
1 1 0
1.01 1.01 0
1.012 1.012 0
1.013 1.013 0
1.627 1.627 0
```

There are 4 eigenvalue(s) larger than 1 in modulus for 2 forward-looking variable(s)

The rank condition ISN’T verified!