Hello everyone!

I would like to use model_diagnostics command in my model. But I noticed that it works strange with STEADY_STATE(…).

For example these three equations obviously aren’t colinear

```
var A_X A_M A_N;
varexo Eta_A_X Eta_A_M Eta_A_N;
parameters rho_A_X rho_A_M rho_A_N sd_eta_A_X sd_eta_A_M sd_eta_A_N;
rho_A_X = 0.738;
rho_A_M = 0.438;
rho_A_N = 0.517;
sd_eta_A_X = 0.0758;
sd_eta_A_M = 0.0858;
sd_eta_A_N = 0.0679;
model;
A_N = A_N(-1)^rho_A_N*STEADY_STATE(A_N)^(1-rho_A_N)*exp(Eta_A_N);
A_M = A_M(-1)^rho_A_M*STEADY_STATE(A_M)^(1-rho_A_M)*exp(Eta_A_M);
A_X = A_X(-1)^rho_A_X*STEADY_STATE(A_X)^(1-rho_A_X)*exp(Eta_A_X);
end;
shocks;
var Eta_A_X; stderr sd_eta_A_X;
var Eta_A_M; stderr sd_eta_A_M;
var Eta_A_N; stderr sd_eta_A_N;
end;
steady_state_model;
A_N = 1;
A_M = 1;
A_X = 1;
end;
steady;
check;
model_diagnostics;
//stoch_simul(irf=40, periods=0, order = 1, nograph);
```

But you get following message

[quote]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:

A_X

Relation 2

Colinear variables:

A_M

Relation 3

Colinear variables:

A_N

Relation 1

Colinear equations

1

Relation 2

Colinear equations

2

Relation 3

Colinear equations

3

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.[/quote]

So need I exclude all STEADY_STATE(…) commands for diagnostic the model?

Thank you!

test.mod (936 Bytes)