Hi Professor @jpfeifer, hi everyone,

i wrote a dsge model with energy and emissions but it doesn’t run. The error message is: One of the eigenvalues is close to 0/0 (the absolute value of numerator and denominator is

smaller than 0.0000!

I don’t understand if there is an error in the mod file or if some equation is wrong.

Thanks to anyone who will help me.

file.mod (1.6 KB)

model equations.pdf (150.1 KB)

`model_diagnostics`

returns:

```
MODEL_DIAGNOSTICS: The Jacobian of the static model is singular
MODEL_DIAGNOSTICS: there is 1 colinear relationships between the variables and the equations
Colinear variables:
w
y
yf
x
c
n
mc
dp
rd
lambda
m
z
mpl
ce
pm
Colinear equations
7 8 9 10
```

Focus on those equations. From what I can see, you can plug these equations into each other to obtain 0=0.

Thanks very much for the reply. Does this mean that the equations are redundant and one is missing?

Exactly, one of them is redundant and therefore another one is missing.

1 Like

Thanks so much. I thought that the missing equation is the one that defines the price of energy, is that so?

I don’t know your model. You are the only one who can know the answer.