Dear Michel and Sébastien, currently Dynare substitutes exogenous lags and leads and adds equations. In the attached mod-file (ignore the complex parameter values which are the true problem for now), there are 12 endogenous variables. The preprocessor now says Substitution of exo leads: added 3 auxiliary variables and equations. Running model_diagnostics delivers: model_diagnostic: the Jacobian of the static model is singular there is 1 colinear relationships between the variables and the equations Colinear variables: c k y l mc R w pi Colinear equations 8 14 But originally, there are only 12 equations. Is there a certain rule where the auxiliary equations are included? Are they simply appended at the end so that I know to focus on equation 8 in this case? And how can I tell to which original exogenous variable equation 14 refers to? If there is no easy answer to those two questions, I would suggest to - add the name of the original substituted variable as a field in M_.aux_vars, which together with the type stored there should be sufficient for full identification. - Add the information about where the equations are appended to the Wiki (http://www.dynare.org/DynareWiki/AuxiliaryVariables) Moreover, regarding the Wiki: could it be that there is a typo and it should be Aux var for endogenous with lag >= 1 instead of >=2 (and the same for endogenous leads)? Best, Johannes -- Johannes Pfeifer Haußerstr. 29 72076 Tübingen Tel.: +49-(0)7071-6396184 Mobil.: +49-(0)170-6936820 Germany