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)

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.

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)