# Linear Function error

Dear Dynare expert,

Could you please help me on the following code? I have tried thousand times, but it always says “linear function: parameters [1*1] structure”

Thank you!

var qq BB KK KKprime;
varexo a;
parameters alpha lamb R mu;
alpha=0.9;
lamb=0.92;
R=1.05;
mu=0.05;
model;
exp(KK)=((a+exp(qq))exp(KK(-1))-Rexp(BB(-1)))/(exp(qq)/lamb-exp(qq(+1))/R);
exp(BB)=exp(qq(+1))exp(KK)/R;
alpha
exp(KKprime)^(alpha-1)=R*(exp(qq)/lamb-exp(qq(+1))/R);
exp(KKprime)+exp(KK)=lamb*(exp(KKprime(-1))+exp(KK(-1)))+(exp(qq)/lamb-1)/(2*mu);
end;
initval;
a=0.5;
end;
check;
shocks;
var a;
periods 1:1;
values 0.05;
end;
simul(periods=200);

The computer returns the following:
Configuring Dynare …
[mex] Generalized QZ.
[mex] Sylvester equation solution.
[mex] Kronecker products.
[mex] Sparse kronecker products.
[mex] Bytecode evaluation.
[mex] k-order perturbation solver.
[mex] k-order solution simulation.

Starting Dynare (version 4.1.2).
Starting preprocessing of the model file …
Found 4 equation(s).
Evaluating expressions…done
Computing static model derivatives:

• order 1
Computing dynamic model derivatives:
• order 1
Processing outputs …done
Preprocessing completed.
Starting MATLAB/Octave computing.

Linear Function:
Parameters: [1x1 struct]

Hi,

In the model you posted the rank condition (given by the instruction “check”) is not verified,probably it may have something to do with the timing of your variable

Best

Thanks so much!

frankcw