# Problems with a two sector model with bond choice

hi jpfeifer ！
I’ve tried to built a model with two kinds of househould which differentiate when they allocate the bonds assets, but the model does not work in software, Can you help me with it?
termStruc.mod (3.99 KB)

The model is defined in the file
TermStruc.pdf (168 KB)

model_diagnostics clearly says

[quote]MODEL_DIAGNOSTICS: The Jacobian of the static model is singular
MODEL_DIAGNOSTICS: there is 6 colinear relationships between the variables and the equations
Relation 1
Colinear variables:
bl
bl1
bl2
Relation 2
Colinear variables:
bs
bs1
bs2
Relation 3
Colinear variables:
bs
bs1
bs2
Relation 4
Colinear variables:
bs
bs1
bs2
bl
bl1
bl2
Relation 5
Colinear variables:
m1
m2
lam1
lam2
c1
c2
k1
k2
bs
bs1
bs2
h1
h2
Relation 6
Colinear variables:
m1
m2
lam1
lam2
c1
c2
k1
k2
bs
bs1
bs2
h1
h2
Relation 1
Colinear equations
2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 22 25

Relation 2
Colinear equations
2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 25

Relation 3
Colinear equations
2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 25

Relation 4
Colinear equations
21

Relation 5
Colinear equations
2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 22 25

Relation 6
Colinear equations
2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 22 25

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]

Are you sure that your model uniquely defines what seems to be a portfolio problem?

You also might want to check why the detected steady state values do not correspond to the one you defined as starting values.

1 Like

Thanks for your help！ In my model, I defined two kinds of household which are only differentiated by the parameters of adjust cost in bonds. I guess the problem is caused by this , But I am not sure and don’t know how to fix it! I will be grateful if you I help me to check the model
TermStruc.pdf (168 KB)