Is there anything wrong with the model being singular.
I found the analytical steady states and the program confirmed that (no residuals). The model also generate the IRFs that I expect it to generate. So, is there any problem with this error?
Is there anything wrong with the model being singular.
I found the analytical steady states and the program confirmed that (no residuals). The model also generate the IRFs that I expect it to generate. So, is there any problem with this error?
That depends on what causes the singularity. If it’s a unit root that the model is supposed to have, then it’s ok.