# The Jacobian of the static model is singular in NK SOE

**URL:** <https://forum.dynare.org/t/the-jacobian-of-the-static-model-is-singular-in-nk-soe/25031>\
**Category:** Steady state\
**Created:** [25 January 2024 05:00 UTC](https://forum.dynare.org/t/the-jacobian-of-the-static-model-is-singular-in-nk-soe/25031 "2024-01-25T05:00:28Z")\
**Posts on this page:** 1\
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**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\
**Post date:** [25 January 2024 07:56 UTC](https://forum.dynare.org/t/the-jacobian-of-the-static-model-is-singular-in-nk-soe/25031/2 "2024-01-25T07:56:27Z")

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The collinearity comes from a unit root in the model. The bigger problem is the instability. See

> [@Something wrong with the steady state](https://forum.dynare.org/t/something-wrong-with-the-steady-state/22045/19):
>
> Yes, there is explosiveness, i.e. one of the stocks (typically capital or bonds) do not have a finite solution. Sometimes that is just a matter of parameters like the elasticities in fiscal rules. At other times, there is a fundamental mistake in the stabilizing mechanisms.

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