I built a simple family labor supply model to investigate the aggregate fluctuations and used DYNARE to simulate it. I calculated the state steady by hand. Unfortunately, it did not work for dynare. I have checked for several times and failed to find any problems. Thus, I attached my model and dynare codes here. I hope somebody give me some suggestion to modify the model or the codes.

Really appreciated for your kind help!

fl.mod (1.59 KB)

model.pdf (92.4 KB)

Put initval before steady and use

with the new snapshot. It will find:

[quote]STEADY-STATE RESULTS:

c_f 0.5244

c_h 0.5807

c_w 0.5807

i 0.3448

y_f 0.5244

y_m 1.5062

n_hm 0.32

n_wm 0.15

n_hf 0.17

n_wf 0.3

w_hm 2.0512

w_wm 2.0512

w_hf 1.0265

w_wf 1.0265

miu 0.90465

eta 0.4526

l_h 0.51

l_w 0.55

r_kf 0.0227

r_km 0.0454

a_f 1

a_m 1

k 13.7908

k_m 11.9446

k_f 1.8462[/quote]

But model_diagnostics says:

[quote]MODEL_DIAGNOSTICS: The Jacobian of the static model is singular

MODEL_DIAGNOSTICS: there is 1 colinear relationships between the variables and the equations

Colinear variables:

n_hm

n_wm

n_hf

n_wf

Colinear equations

4 5 6 7 12 13 14 15

MODEL_DIAGNOSTICS: The presence of a singularity problem typically indicates that there is one

MODEL_DIAGNOSTICS: redundant equation entered in the model block, while another non-redundant equation

MODEL_DIAGNOSTICS: is missing. The problem often derives from Walras Law.[/quote]

[quote=“jpfeifer”]Put initval before steady and use

with the new snapshot. It will find:

[quote]STEADY-STATE RESULTS:

c_f 0.5244

c_h 0.5807

c_w 0.5807

i 0.3448

y_f 0.5244

y_m 1.5062

n_hm 0.32

n_wm 0.15

n_hf 0.17

n_wf 0.3

w_hm 2.0512

w_wm 2.0512

w_hf 1.0265

w_wf 1.0265

miu 0.90465

eta 0.4526

l_h 0.51

l_w 0.55

r_kf 0.0227

r_km 0.0454

a_f 1

a_m 1

k 13.7908

k_m 11.9446

k_f 1.8462[/quote]

But model_diagnostics says:

[quote]MODEL_DIAGNOSTICS: The Jacobian of the static model is singular

MODEL_DIAGNOSTICS: there is 1 colinear relationships between the variables and the equations

Colinear variables:

n_hm

n_wm

n_hf

n_wf

Colinear equations

4 5 6 7 12 13 14 15

MODEL_DIAGNOSTICS: The presence of a singularity problem typically indicates that there is one

MODEL_DIAGNOSTICS: redundant equation entered in the model block, while another non-redundant equation

MODEL_DIAGNOSTICS: is missing. The problem often derives from Walras Law.[/quote]

[/quote]

I have checked the mod.file. I made mistake in the “initval” block. Now, I got the same steady state values as you posted. However, the model still fails to work in dynare. The problem as stated by the diagnostics is “there is one redundant equation entered in the model block, while another non-redundant equation is missing.” I have checked all the equations in the mod file. I put all the 25 equations in my model into the mod file and get values for 25 endogenous variables. Thus, I am not able to understand this diagnostics. Please check my model ( there is some typos) and give me some suggestion. Thanks for your help! Really appreciated!

As it says: there is one equation in your model that is redundant. Instead you forgot another equation that is needed to solve the model. What that is, I don’t know.