function model_diagnostics(M,options,oo)
% function model_diagnostics(M,options,oo)
% computes various diagnostics on the model
% INPUTS
% M [matlab structure] Definition of the model.
% options [matlab structure] Global options.
% oo [matlab structure] Results
%
% OUTPUTS
% none
%
% ALGORITHM
% ...
%
% SPECIAL REQUIREMENTS
% none.
%
% Copyright © 1996-2023 Dynare Team
%
% This file is part of Dynare.
%
% Dynare is free software: you can redistribute it and/or modify
% it under the terms of the GNU General Public License as published by
% the Free Software Foundation, either version 3 of the License, or
% (at your option) any later version.
%
% Dynare is distributed in the hope that it will be useful,
% but WITHOUT ANY WARRANTY; without even the implied warranty of
% MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the
% GNU General Public License for more details.
%
% You should have received a copy of the GNU General Public License
% along with Dynare. If not, see .
endo_nbr = M.endo_nbr;
endo_names = M.endo_names;
lead_lag_incidence = M.lead_lag_incidence;
maximum_endo_lag = M.maximum_endo_lag;
if options.ramsey_policy
%test whether specification matches
inst_nbr = size(options.instruments,1);
if inst_nbr~=0
orig_endo_aux_nbr = M.orig_endo_nbr + min(find([M.aux_vars.type] == 6)) - 1;
implied_inst_nbr = orig_endo_aux_nbr - M.orig_eq_nbr;
if inst_nbr>implied_inst_nbr
error('You have specified more instruments than there are omitted equations')
elseif inst_nbr1e-15);
fprintf('\nMODEL_DIAGNOSTICS: The Jacobian of the static model contains imaginary parts. The problem arises from: \n\n')
display_problematic_vars_Jacobian(imagrow,imagcol,M,dr.ys,'static','MODEL_DIAGNOSTICS: ')
end
try
if isoctave || matlab_ver_less_than('9.12') || isempty(options.jacobian_tolerance)
rank_jacob = rank(jacob); %can sometimes fail
else
rank_jacob = rank(jacob,options.jacobian_tolerance); %can sometimes fail
end
catch
rank_jacob=size(jacob,1);
end
if rank_jacob < size(jacob,1)
problem_dummy=1;
singularity_problem = 1;
disp(['MODEL_DIAGNOSTICS: The Jacobian of the static model is ' ...
'singular'])
disp(['MODEL_DIAGNOSTICS: there is ' num2str(endo_nbr-rank_jacob) ...
' colinear relationships between the variables and the equations'])
if isoctave || matlab_ver_less_than('9.12') || isempty(options.jacobian_tolerance)
ncol = null(jacob);
else
ncol = null(jacob,options.jacobian_tolerance); %can sometimes fail
end
n_rel = size(ncol,2);
for i = 1:n_rel
if n_rel > 1
disp(['Relation ' int2str(i)])
end
disp('Colinear variables:')
for j=1:10
k = find(abs(ncol(:,i)) > 10^-j);
if max(abs(jacob(:,k)*ncol(k,i))) < 1e-6
break
end
end
fprintf('%s\n',endo_names{k})
end
if isoctave || matlab_ver_less_than('9.12') || isempty(options.jacobian_tolerance)
neq = null(jacob'); %can sometimes fail
else
neq = null(jacob',options.jacobian_tolerance); %can sometimes fail
end
n_rel = size(neq,2);
for i = 1:n_rel
if n_rel > 1
disp(['Relation ' int2str(i)])
end
disp('Colinear equations')
for j=1:10
k = find(abs(neq(:,i)) > 10^-j);
if max(abs(jacob(k,:)'*neq(k,i))) < 1e-6
break
end
end
disp(k')
end
end
end
if singularity_problem
try
options_check=options;
options_check.noprint=1;
[eigenvalues_] = check(M, options_check, oo);
if any(abs(abs(eigenvalues_)-1)<1e-6)
fprintf('MODEL_DIAGNOSTICS: The singularity seems to be (partly) caused by the presence of a unit root\n')
fprintf('MODEL_DIAGNOSTICS: as the absolute value of one eigenvalue is in the range of +-1e-6 to 1.\n')
fprintf('MODEL_DIAGNOSTICS: If the model is actually supposed to feature unit root behavior, such a warning is expected,\n')
fprintf('MODEL_DIAGNOSTICS: but you should nevertheless check whether there is an additional singularity problem.\n')
end
catch
end
fprintf('MODEL_DIAGNOSTICS: The presence of a singularity problem typically indicates that there is one\n')
fprintf('MODEL_DIAGNOSTICS: redundant equation entered in the model block, while another non-redundant equation\n')
fprintf('MODEL_DIAGNOSTICS: is missing. The problem often derives from Walras Law.\n')
end
%%check dynamic Jacobian
klen = M.maximum_lag + M.maximum_lead + 1;
exo_simul = [repmat(oo.exo_steady_state',klen,1) repmat(oo.exo_det_steady_state',klen,1)];
iyv = M.lead_lag_incidence';
iyv = iyv(:);
iyr0 = find(iyv) ;
it_ = M.maximum_lag + 1;
z = repmat(dr.ys,1,klen);
if ~options.block
if options.order == 1
if (options.bytecode)
[~, loc_dr] = bytecode('dynamic','evaluate', z,exo_simul, ...
M.params, dr.ys, 1);
jacobia_ = [loc_dr.g1 loc_dr.g1_x loc_dr.g1_xd];
else
[~,jacobia_] = feval([M.fname '.dynamic'],z(iyr0),exo_simul, ...
M.params, dr.ys, it_);
end
elseif options.order >= 2
if (options.bytecode)
[~, loc_dr] = bytecode('dynamic','evaluate', z,exo_simul, ...
M.params, dr.ys, 1);
jacobia_ = [loc_dr.g1 loc_dr.g1_x];
else
[~,jacobia_,hessian1] = feval([M.fname '.dynamic'],z(iyr0),...
exo_simul, ...
M.params, dr.ys, it_);
end
end
if any(any(isinf(jacobia_) | isnan(jacobia_)))
problem_dummy=1;
[infrow,infcol]=find(isinf(jacobia_) | isnan(jacobia_));
fprintf('\nMODEL_DIAGNOSTICS: The Jacobian of the dynamic model contains Inf or NaN. The problem arises from: \n\n')
display_problematic_vars_Jacobian(infrow,infcol,M,dr.ys,'dynamic','MODEL_DIAGNOSTICS: ')
end
if any(any(~isreal(jacobia_)))
[imagrow,imagcol]=find(abs(imag(jacobia_))>1e-15);
if ~isempty(imagrow)
problem_dummy=1;
fprintf('\nMODEL_DIAGNOSTICS: The Jacobian of the dynamic model contains imaginary parts. The problem arises from: \n\n')
display_problematic_vars_Jacobian(imagrow,imagcol,M,dr.ys,'dynamic','MODEL_DIAGNOSTICS: ')
end
end
if exist('hessian1','var')
if any(any(isinf(hessian1) | isnan(hessian1)))
problem_dummy=1;
fprintf('\nMODEL_DIAGNOSTICS: The Hessian of the dynamic model contains Inf or NaN.\n')
end
end
else
fprintf('\nMODEL_DIAGNOSTICS: This command currently does not support the block option for checking.\n')
fprintf('\nMODEL_DIAGNOSTICS: the dynamic model. You may want to disable it for doing model_diagnostics. Skipping this part.\n')
end
if problem_dummy==0
fprintf('MODEL_DIAGNOSTICS: No obvious problems with this mod-file were detected.\n')
end