I am trying to solve my model non-linearly (the mod file is attached), but I’ve got the following error message
“Error using print_info (line 52)
One of the eigenvalues is close to 0/0 (the absolute value of numerator and denominator is
smaller than 1e-6)
Error in check (line 76)
print_info(info, options.noprint);
Error in Model (line 537)
oo_.dr.eigval = check(M_,options_,oo_);
Error in dynare (line 120)
evalin(‘base’,fname) ;”
I guess it can be solved if I re-parameterize, although I am not sure which exactly parameters I need to change given the complexity of model. Is there any way to figure it out or somehow fix this issue?
[quote]
model_diagnostic: the Jacobian of the static model is singular
there is 6 colinear relationships between the variables and the equations
Relation 1
Colinear variables:
y
yo
yno
c
n
kno
ko
gc
kg
infl
ir
er
int
nx
bf
b
of
orev
po
inff
cf
iff
fdi
uo
q
w
co
cn
tn
to
t
rkno
inv
gi
mc
ph
g1
g2
Relation 2
Colinear variables:
y
yo
yno
c
n
kno
ko
gc
kg
ir
er
int
nx
bf
b
of
orev
po
q
w
co
cn
tn
to
t
rkno
inv
gi
mc
ph
g1
g2
Relation 3
Colinear variables:
yo
yno
c
n
kno
ko
gc
kg
er
int
nx
bf
b
of
orev
fdi
q
w
co
cn
tn
to
t
rkno
inv
gi
mc
ph
g1
g2
Relation 4
Colinear variables:
co
cn
tn
to
Relation 5
Colinear variables:
p
Relation 6
Colinear variables:
pstar
Relation 1
Colinear equations
Columns 1 through 25