I have three equations in my model that are collinear. But the error does not show up when one sector (with 6 equations) is removed, while still keeping the three collinear equations in the model.
//Collinear equations lambdar - rb = lambdar(+1); lambdar + S - rf = S(+1) + lambdar(+1); S(+1) - S = rb-rf;
If I removed all equations associated with the export sector, the model runs with no errors although the three collinear equations are still in there. This is somehow strange to me. Maybe someone has experienced such a problem before. Any response is appreciated. Thanks!
//Export sector ydtss* ydt = ydss*yd - yxtss*yxt; yxt = zetax*(pstar-pxt) + cstar; mcxt = pd - S - pxt; pixt = beta*pixt(+1) + ((1-kappax)*(1-beta*kappax)/kappax)*(mcxt - pxt); pixt(+1) = pxt(+1) - pxt; cstar = rhocstar*cstar(-1) + ecstar;