Hello profosser

I check my model by model diagnosis, and its result is followoing:

The presence of a singularity problem typically indicates that there is one redundant equation entered in the model block, while another non-redundant equation is missing. The problem often derives from Walras Law.

Would you please help me to how i can find and eliminate redundant equation?

Can I omit the labor market? so what’s happen to other labor and wage variables in other equations, like production function?

Thanks for any helpa13971013.mod (14.1 KB)

# Walras law in dsge model

**Ali.Tahvili**#1

Not good results in dsge model

**jpfeifer**#2

That is hard to debug. I can only recommend starting with a smaller model to see where the problem is.

**Ali.Tahvili**#3

Hi professor

Would you please guide me to how i can simplify the model? Do you mean that i should remove, for example, the banking sector or change the functions or processes? if i remove one sector like banking system, then all the model would change. Is it possible?

Best Regards

**jpfeifer**#4

You should start from the most simply model that still works. That may mean removing problematic sectors.