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_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

Colinear variables:

i1

i2

k1

k2

Colinear equations

1 3

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)