Here is my story…
I wrote a mod file with calibrated parameters. It went well. And I get desired results. Then I tried to estimated my model, but it reports a series of problems.
So I used
model_diagnostics. It shows the following
MODEL_DIAGNOSTICS: The Jacobian of the static model is singular
MODEL_DIAGNOSTICS: there is 6 colinear relationships between the variables and the equations
Back to the mod file where there is no estimation,
model_diagnostics also gives me the same message…SIX colinear relationship? Aren’t they too many?
And the most strange thing is, even if
model_diagnostics tells me that “The Jacobian is singular”, my BK condition is satisfied. There is no unit root at all. What’s more, IRFs, policy functions, and transition functions are well reported.
Why is that? And is there any clue to fix my problem?
I attach my mod file below.
Thanks in advance!
I was trying to estimate my model but the result was