Dear all,

I want to model a SOE with Tradables and Non-Tradable goods.

I have started from [this code]

(Dropbox - SOE2Gzip - Simplify your life), but I get 1 colinear relation.

I am not sure what could be the missing equation, so I was wondering if anybody could help me.

Thank you very much for your help and advice.

nk_open.mod (3.8 KB)

console_nkopen.m (1.6 KB)

Itâ€™s hard to tell without going through all of the derivations. But

```
1=(pn^(1-gamma))^(1-alpha)*s^(alpha);
pn^(1-gamma)=s^(-alpha/(1-alpha));
```

are identical. So there is clearly an equation missing.

Hello,

thanks!

I have tried introducing the UIP, as the missing equation, but I still get a collinearity problem.

Do you have any tip on what might be the probem?

Thank you very much in advance.

nk_open_2.mod (3.9 KB)