What is the theoretical moment wrt empirical moment? And how Dynare compute it? I get NA for the mean of variables, I do not know why.

THEORETICAL MOMENTS

VARIABLE MEAN STD. DEV. VARIANCE

lyU NaN 0.2073 0.0430

lcU NaN 0.1467 0.0215

liU NaN 1.3906 1.9337

lxU NaN 0.1153 0.0133

lqU NaN 0.1683 0.0283

lsU NaN 0.1275 0.0162

lsmallhU NaN 0.1665 0.0277

lHU NaN 0.1665 0.0277

aU NaN 5.0163 25.1632

luU NaN 0.6115 0.3739

lwbarU NaN 0.1049 0.0110

nxdivGDPU NaN 0.2295 0.0527

lSlevU NaN NaN NaN

lmuzplusU NaN 0.0208 0.0004

Please post the mod-file

I run this mod in v4.2.0 and I got the following output.

I guess why I get the NaN for the theoretical mean may be I have too much states and predetermined variables. But I am not sure about that.

I do not know why I get a warning about the singularity of matrix.

I have stored the initial values for parameters and endogenous variables into a mat file and it will be loaded by the mod file.

…

There are 31 eigenvalue(s) larger than 1 in modulus

for 31 forward-looking variable(s)

The rank condition is verified.

MODEL SUMMARY

Number of variables: 85

Number of stochastic shocks: 12

Number of state variables: 36

Number of jumpers: 31

Number of static variables: 26

…

Warning: **Matrix is singular to working precision**.

In th_autocovariances at 112

In disp_th_moments at 37

In stoch_simul at 134

In baseline2 at 1054

In dynare at 132

THEORETICAL MOMENTS

VARIABLE MEAN STD. DEV. VARIANCE

lyU NaN 0.2073 0.0430

lcU NaN 0.1467 0.0215

liU NaN 1.3906 1.9337

lxU NaN 0.1153 0.0133

lqU NaN 0.1683 0.0283

lsU NaN 0.1275 0.0162

lsmallhU NaN 0.1665 0.0277

lHU NaN 0.1665 0.0277

aU NaN 5.0163 25.1632

luU NaN 0.6115 0.3739

lwbarU NaN 0.1049 0.0110

nxdivGDPU NaN 0.2295 0.0527

lSlevU NaN NaN NaN

lmuzplusU NaN 0.0208 0.0004

model_diagnostics suggests a collinearity issue with respect to the variable lSlevU:

[quote]model_diagnostic: the Jacobian of the static model is singular

there is 1 colinear relationships between the variables and the equations

Colinear variables:

lSlevU

Colinear equations

Columns 1 through 19

```
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
```

Columns 20 through 38

```
20 21 23 24 25 26 27 28 30 31 32 33 34 35 36 37 38 39 41
```

Columns 39 through 57

```
42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 60 61
```

Columns 58 through 76

```
62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80
```

Columns 77 through 80

```
81 82 83 85
```

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.[/quote]

Deleting that variable solves the issue.

[quote=“jpfeifer”]model_diagnostics suggests a collinearity issue with respect to the variable lSlevU:

[quote]model_diagnostic: the Jacobian of the static model is singular

there is 1 colinear relationships between the variables and the equations

Colinear variables:

lSlevU

Colinear equations

Columns 1 through 19

```
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
```

Columns 20 through 38

```
20 21 23 24 25 26 27 28 30 31 32 33 34 35 36 37 38 39 41
```

Columns 39 through 57

```
42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 60 61
```

Columns 58 through 76

```
62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80
```

Columns 77 through 80

```
81 82 83 85
```

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.[/quote]

Deleting that variable solves the issue.[/quote]

Thanks very much, jpfeifer, you are so helpful!