# Question about financial accelerator in soe

The model is Based on BGG(1999) and Gertler (2007) External Constraints on Monetary Policy and the Financial Accelerator.but there is something wrong with dynare code I wrote,as follow:
Error using print_info (line 36)
The generalized Schur (QZ) decomposition failed. For more information, see the documentation
for Lapack function dgges: info=23, n=23

Error in check (line 76)
print_info(info, options.noprint);

Error in test3 (line 312)
oo_.dr.eigval = check(M_,options_,oo_);

Error in dynare (line 120)
evalin(‘base’,fname) ;

the model and the dynare code i wrote attached.
will you so kind to give me some advises. thank you in advance.
test.mod (3.98 KB)
Financial accelerator in soe.pdf (236 KB)

Run model_diagnostics to see

[quote]model_diagnostic: the Jacobian of the static model is singular
there is 2 colinear relationships between the variables and the equations
Relation 1
Colinear variables:
p
p_h
p_f
e
pf
Relation 2
Colinear variables:
p
p_h
p_f
e
pf
Relation 1
Colinear equations
3 4 5 6 7 8 9 14 15 16 17 18 19 22

Relation 2
Colinear equations
3 4 5 6 7 8 9 14 15 16 17 18 19 22

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]

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[quote=“lipetty”]The model is Based on BGG(1999) and Gertler (2007) External Constraints on Monetary Policy and the Financial Accelerator.but there is something wrong with dynare code I wrote,as follow:
Error using print_info (line 36)
The generalized Schur (QZ) decomposition failed. For more information, see the documentation
for Lapack function dgges: info=23, n=23

Error in check (line 76)
print_info(info, options.noprint);

Error in test3 (line 312)
oo_.dr.eigval = check(M_,options_,oo_);

Error in dynare (line 120)
evalin(‘base’,fname) ;

the model and the dynare code i wrote attached.
will you so kind to give me some advises. thank you in advance.[/quote]

Excuse me, do you still have this .mod ? Now I am reading this paper, I want to running this mod on my computer, could you provide me with this .mod please? Thank you very much!