It is ok to run the mod file if i set phiy = 0.2, but when i run the model_diagnostics(M_,options_,oo_) or i set phiy = 0.5
monetary.mod (7.7 KB)
, it shows MODEL_DIAGNOSTICS: The Jacobian of the static model is singular
MODEL_DIAGNOSTICS: there is 1 collinear relationships between the variables and the equations
Collinear variables:
y
i
k
c
w
R
lambda
n
pi
mc
dp
z1
z2
pis
m
mu
Collinear equations
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I do not know if the problem lies in Taylor Rule part? The error message is that if i remove the sticky price part about these variables. Run model_diagnostics(M_,options_,oo_), it turns out
monetary.mod (4.1 KB) The code is updated. If i use ln(R/Rs) = rho_R*ln(R(-1)/Rs)+ (1-rho_R)*phiy*ln(y/steady_state(y))+(1-rho_R)*phipi*ln(pi/pi0)+ eR; it occurs the above error. If i use ln(R/Rs) = rho_R*ln(R(-1)/Rs)+ (1-rho_R)*phiy*ln(y/y(-1))+(1-rho_R)*phipi*ln(pi/pi0)+ eR;, it occurs no error? Why??
Can we use it in the Taylor rule? Sometimes it runs out “Exogenous variables are not allowed in the context of the STEADY_STATE() operator.”
See
