Colinearity Problem, Only one equation!

Dynare help (legacy posts)
1

Hi every one,
how is it possible that there is colinearity between bunch of variables, and there is only one colinear equation?

2

Coud you post an example?

3

Here is my two country model I have told you about,
Thanks a lot.
sfile.m (3.59 KB)
owp3_steadystate.m (5.04 KB)
owp3.mod (8.06 KB)

4

The reason is numerical. A computer always has to make a decision what to take as 0, even if it is not exactly 0. If you look into model_diagnostics, you will see that some choices have to be made what to count as singular as opposed to close to singular. The output of model_diagnostics should thus be seen as providing guidelines what to look at. You should not interpret it as a strict analytical statement.

5

Thanks,
I am removing the rigidities to find the problem.