Dear professor jpfeifer:
When we run the consumer1.mod file in dynare, this model is satisfied with the Blanchard Kahn conditions.
But when we use the command of model_diagnostics(M_,options_,oo_),there is a trouble . The error information is coming up with the following message:
There are 5 eigenvalue(s) larger than 1 in modulus
for 5 forward-looking variable(s)
The rank condition is verified.
Total computing time : 0h00m15s
After use the command of model_diagnostics(M_,options_,oo_)
model_diagnostic: the Jacobian of the static model is singular
there is 1 colinear relationships between the variables and the equations
In generally, how do we to solve the Colinear equations problems?
Thank you much for your help and support!
The mod file as follows:
consumer1.mod (3.5 KB)