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
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?