Residual of static equation of one equation is non zero

Stochastic simulations
1

Hello,
I am trying to run a RBC model with environmental externality. The residual for all static equations are zero except for resource constraint. I am unable to understand the problem with this equation.

I put the difference in equation to see if there are other issues in the model. The Jacobian is coming to be singular. The collinear equations are technology for brown sector i.e. equation no 12 and government expenditure as shock equation i.e. equation no 23 are collinear. I am unable to identify the issue in the model.
Please guide.

Thanks and regards
Saurav Kumar
rbc1.log (2.2 KB)
rbc.mod (8.6 KB)

rbc.log (1.0 KB)
rbc.mod (8.6 KB)

2
  1. Focus on finding out why the steady state does not solve. There must either be a mistake in the model equations or your steady state computations.
  2. Regarding collinearity, the problem is that you are trying to use the steady_state() -operator on stuff that cannot be endogenously determined (e.g. the mean of exogenous processes). See also Levels versus Growth Rates - #8 by jpfeifer