Colinear relationships between the variables and the equations


Dear Professor Jpfeifer,
It is the first time I run Dynare. I’ve developed a small open economy DSGE model with equations log-linearized around the steady state for my Master Thesis. When I run the mod file in dynare, the error information is coming up with the following message:
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:
Colinear equations
1 6 15
MODEL_DIAGNOSTICS: The presence of a singularity problem typically indicates that there is one redundant equation entered in the model block, while another non-redundant eq
uation is missing. The problem often derives from Walras Law.

I really cannpt understand what is th eproblem with equations 1 6 15 and variable s…Maybe it is the timing problem and I should convert add the command ‘‘predetermined variables’’? Could you please help me to deal with this priblem?
Sincerely, Valeri.



Dear Prpfessor Jpfeifer,
I also attacj the above mentioned mod filedsgemodel.mod (2.7 KB)



Following one of your recommendations, I disentangled s, but there appeared another error:
One of the eigenvalues is close to 0/0 (the absolute value of numerator and denominator is
smaller than 1e-06!
If you believe that the model has a unique solution you can try to reduce the value of qz_zero_t
Could you please help me?



Please provide the most recent version, but this indicates a fundamental mistake in the equations