Hi,

I am working on a model which produces the following output which I am finding difficult to interpret

“Error using print_info (line 37)

The generalized Schur (QZ) decomposition failed. For more information, see the documentation for Lapack function dgges: info=51,

n=49. You can also run model_diagnostics to get more information on what may cause this problem.”

On running model_diagnostics, I am getting

model_diagnostic: the Jacobian of the static model is singular

there is 3 colinear relationships between the variables and the equations

Relation 1

Colinear variables:

n_p

D

w_p

t_p

n_i

w_i

b

t_i

r_b

r_tild

h

W_p

W_i

r_r

b_r

q_h

t_r

mu_r

R_tild

K

B

npa_rat

j_b

AUX_ENDO_LAG_44_1

Relation 2

Colinear variables:

n_p

D

w_p

t_p

n_i

w_i

b

t_i

r_b

r_tild

h

W_p

W_i

r_r

b_r

q_h

t_r

mu_r

R_tild

K

B

npa_rat

j_b

AUX_ENDO_LAG_44_1

Relation 3

Colinear variables:

n_p

D

w_p

t_p

n_i

w_i

b

t_i

r_b

r_tild

h

W_p

W_i

r_r

b_r

q_h

t_r

mu_r

R_tild

K

B

npa_rat

j_b

AUX_ENDO_LAG_44_1

Relation 1

Colinear equations

3 32 33 35 36 44 52 53 55

Relation 2

Colinear equations

3 32 33 35 36 44 52 53 55

Relation 3

Colinear equations

3 32 33 35 36 44 52 53 55

The presence of a singularity problem typically indicates that there is one

redundant equation entered in the model block, while another non-redundant equation

is missing. The problem often derives from Walras Law.

Please help me solve this problem. The mod file is attached.

utility_new_model2.mod (14.2 KB)