# Single collinear equation
**URL:** https://forum.dynare.org/t/single-collinear-equation/25258
**Category:** Stochastic simulations
**Created:** [27 February 2024 14:30 UTC](https://forum.dynare.org/t/single-collinear-equation/25258 "2024-02-27T14:30:25Z")
**Posts on this page:** 5
**Page:** 1
### Author:  [@deniss](https://forum.dynare.org/u/deniss)
#### Post date: [27 February 2024 14:30 UTC](https://forum.dynare.org/t/single-collinear-equation/25258/1 "2024-02-27T14:30:25Z")
Dear all!
I am trying to replicate a New-Keynesian DSGE model. I use equations from the Appendix of the paper, where the Taylor rule is defined by authors as follows:
r\_{f,t} = \rho\_r r\_{f, t-1} + (1-\rho\_r) \left[r\_f^{ss} + \alpha\_{\pi}log(\pi/\bar{\pi}) + \alpha\_Ylog(Y/Y(-1) \right] ,
where Y stands for output, r\_{f,t} is the net policy rate and \pi is inflation rate. There is no issue with the steady state.
However, when I try to simulate a model I have the issue.
When I try this:
```auto
r_f = rho_r*r_f(-1) + (1-rho_r)*( steady_state(r_f) + alpha_pie*log(pie/steady_state(pie))
+ alpha_Y*log(Y/Y(-1)) );
```
I run into the issue:
```auto
MODEL_DIAGNOSTICS: The Jacobian of the static model is singular
MODEL_DIAGNOSTICS: there is 1 colinear relationships between the variables and the equations
...*list of variables*...
Colinear equations
58
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.
```
What surprise me is the fact that Dynare point only at single **equations 58, which is my Taylor rule.**
I adjust the equation, for example, by using specific values for steady state:
```auto
(1+r_f) = (1+r_f(-1))^rho_r * (1 + 0.0121325)^(1-rho_r) * ( (pie/1.005)^alpha_pie * (Y/Y(-1))^alpha_Y )^(1-rho_r) ;
```
Then I get:
```auto
MODEL_DIAGNOSTICS: No obvious problems with this mod-file were detected.
Error using print_info
Blanchard & Kahn conditions are not satisfied: no stable equilibrium.
```
Any help would be highly appreciated. I am using Dynare 5.4 and MATLAB\_R2023b (Intel architect).
---
### Author:  [@jpfeifer](https://forum.dynare.org/u/jpfeifer)
#### Post date: [27 February 2024 14:53 UTC](https://forum.dynare.org/t/single-collinear-equation/25258/2 "2024-02-27T14:53:17Z")
See
> [@Collinear equation](https://forum.dynare.org/t/collinear-equation/18698/18):
>
> You can verify in the displayed eigenvalues that there are three unit roots in your model. The reason is you trying to endogenously compute the steady state with the steady\_state-operator for things that cannot be endogenously determined. See
---
### Author:  [@deniss](https://forum.dynare.org/u/deniss)
#### Post date: [28 February 2024 04:30 UTC](https://forum.dynare.org/t/single-collinear-equation/25258/3 "2024-02-28T04:30:54Z")
Dear Professor,
Thank you for your response. I have looked through the forum and implemented this idea of pinning down steady state value of inflation, but the error (as I have pointed above) is still as follows:
```auto
MODEL_DIAGNOSTICS: No obvious problems with this mod-file were detected.
Error using print_info
Blanchard & Kahn conditions are not satisfied: no stable equilibrium.
```
Might it be a timing error or anything else? Any hint would be highly appreciated!
---
### Author:  [@jpfeifer](https://forum.dynare.org/u/jpfeifer)
#### Post date: [28 February 2024 07:21 UTC](https://forum.dynare.org/t/single-collinear-equation/25258/4 "2024-02-28T07:21:26Z")
Please provide the most recent version.
---
### Author:  [@deniss](https://forum.dynare.org/u/deniss)
#### Post date: [10 March 2024 09:28 UTC](https://forum.dynare.org/t/single-collinear-equation/25258/5 "2024-03-10T09:28:16Z")
Dear Professor,
Thank you for your help. I have double-checked the file before sending it to you and the issue was with timings. Now everything works.