Singularity problem and colinear relationships between variables and equations

General DSGE Modeling
1

Hello everyone,
When I run my model, it stops with the following error message. Could you please kindly remind me of any way to sovle the colinear relationships? Any help will be greatly appreciated. Thank you very much in advance.

Error using print_info (line 32)
The generalized Schur (QZ) decomposition failed. For more information, see the documentation for Lapack function
dgges: info=175, n=173. You can also run model_diagnostics to get more information on what may cause this
problem.

MODEL_DIAGNOSTICS:  The Jacobian of the static model is singular
MODEL_DIAGNOSTICS:  there is 22 colinear relationships between the variables and the equations

Best wishes
DSGE_1119_debugg.mod (74.6 KB)

2

The collinear relationships are partially caused by unit roots in the model. But that is not the fundamental issue here. Given a model of that size, it is impossible to debug. You should try a simplified version. Have you verified the steady state value make sense?

3

Many many thanks for your response and advice, jpfeifer.Most of the steady state value are following the paper rule, except for some of them are set by my intuition with its economic meaning. Maybe simplify the model is the only way for me. Thanks again.