hello everyone

I have a problem with my dynare code

i write on dynare the equations from Ruslan Aliyev’s paper " Monetary Policy in Resource-Rich" (page 41) with parameters (page 19) and initial value (page 21) but when i run the code there is a error message :

??? Error using ==> print_info at 74

Impossible to find the steady state. Either the model doesn’t have a steady state, there

are an infinity of steady states, or the guess values are too far from the solution

Error in ==> steady at 92

print_info(info,options_.noprint, options_);

Error in ==> code at 241

steady;

Error in ==> dynare at 180

evalin(‘base’,fname) ;

I am looking for help

thanks

paper.pdf (638 KB)

code.mod (1.63 KB)

The unstable version of Dynare is able to find a steady state. But there is a collinearity issue in your model. Upon running model_diagnostics, I get

[quote]MODEL_DIAGNOSTICS: The Jacobian of the static model is singular

MODEL_DIAGNOSTICS: there is 3 colinear relationships between the variables and the equations

Relation 1

Colinear variables:

c

cm

cn

e

p

pm

pn

m

l

lm

lln

km

kn

w

r

phi

s

y

ym

yn

Relation 2

Colinear variables:

c

cm

cn

e

p

pm

pn

m

l

lm

lln

km

kn

w

r

phi

s

y

ym

yn

Relation 3

Colinear variables:

c

cm

cn

e

p

pm

pn

m

l

lm

lln

km

kn

w

r

phi

s

y

ym

yn

Relation 1

Colinear equations

13 14 15

Relation 2

Colinear equations

14 15

Relation 3

Colinear equations

13 14 15

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.[/quote]

thank you professor,

so, what should i do.

Find the source of the problem. Unfortunately, this is hard. As the error message says, usually you have selected one redundant equation from the paper while omitting another one that should take its place. You need to find the redundant and the missing equation.

thank you professor

I will consider your comments