Help finding redundant equation

General DSGE Modeling Replication Attempts
1

I have the following code to replicate the paper by Mimir and Sunel (Fear_No_More_of_Floating_APP_ER_Dynamics.pdf - Google Drive). I have the following code:
MSreal_Dec11noexp.mod (23.7 KB)

I get the error message that:
MODEL_DIAGNOSTICS: The presence of a singularity problem typically indicates that there is one
MODEL_DIAGNOSTICS: redundant equation entered in the model block, while another non-redundant equation
MODEL_DIAGNOSTICS: is missing. The problem often derives from Walras Law.

as well as this:

MODEL_DIAGNOSTICS: The Jacobian of the static model is singular
MODEL_DIAGNOSTICS: there is 7 colinear relationships between the variables and the equations

I would really appreciate any help to solve the issue.

Thank you.

2

Write first the model of the real economy. Check there is no collinearity. Then add the financial relationships a few at the time. As soon as collinearity shows up, you know that the problem has to do with the last equations that you have added

3

First of all, you need to find the steady state. The steady state file does not solve the model. That inconsistency may provide a clue.

4

now the steady state is computed. But I get the following error.
There are 16 eigenvalue(s) larger than 1 in modulus
for 19 forward-looking variable(s)

The rank condition ISN’T verified!

Warning: Problem in the model specification: some variables don’t appear as current.
Check whether this is desired.

In check_model (line 21)
In stoch_simul (line 92)
In Dec18vs2.driver (line 821)
In dynare (line 281)
Error using print_info
Blanchard & Kahn conditions are not satisfied: indeterminacy.

The code is
Dec14vs2.mod (17.0 KB)

I would appreciate any help.

5

Usually, it’s a timing error. Given the size of your model, I can only recommend to simplify.