I am solving a multi industry model with a monetary and a macroprudential rule. When I run the model I do not get any particular error but the Theoretical Moments show up as NaN.
Model diagnostics detects a colinear relationship between the productivity shock and the macroprudential rule, and suggests there maybe a redundant equation. However, I have four optimizing agents and I am excluding one of the four budget constraints, therefore I was not expecting to have issues concerning the Walras’ Law.
Thanks in advance for your help