Singularity problem—about production function

General DSGE Modeling
1

  • Dear all.I have constructed a model encompassing two types of households and housing choices, and I have already solved for the steady-state values. The only remaining issue is the collinearity problem in the production function. Could you please advise on how to address this issue? Here is my code:

  • noo.mod (9.8 KB)

Anyone can help , thanks a lot!

2

  1. The collinearity seems to be caused by a unit root.

  2. Please check the timing and parameter value.