A problem with Occassionally binding constraints

Stochastic simulations
1

Hi,

I am trying to solve a model with Occbin. When I solve the linear model with dynare, it solves beautifully. But when I use Occbin to solve my two regime model (one occassionally binding constraint) it produces the following errors. Can you please guide me where I am going wrong. The forum is not allowing me to upload the required files.

Warning: Some of the parameters have no value (psi, gamma_s, G, gamma_e, beta_p, beta_e, beta_b, nu_b,
mu_k, rho_a, ass, rho_epsh, rho_epsg, epshss, epsgss, m, yss, j, v, alph, iss, phipie, phix, piss, delt,
alph1, alph2) when using steady. If these parameters are not initialized in a steadystate file, Dynare may
not be able to solve the model…

In test_for_deep_parameters_calibration (line 46)
In steady (line 33)
In deficitbinding (line 243)
In dynare (line 180)
In solve_one_constraint (line 37)
In runsim_deficit (line 65)

STEADY: The Jacobian contains Inf or NaN. The problem arises from:

STEADY: Derivative of Equation 3 with respect to Variable l (initial value of l: 0)
STEADY: Derivative of Equation 4 with respect to Variable l (initial value of l: 0)
STEADY: Derivative of Equation 5 with respect to Variable l (initial value of l: 0)
STEADY: Derivative of Equation 4 with respect to Variable w (initial value of w: 0)
STEADY: Derivative of Equation 5 with respect to Variable w (initial value of w: 0)
STEADY: Derivative of Equation 5 with respect to Variable c_s (initial value of c_s: 0)
STEADY: Derivative of Equation 7 with respect to Variable c_s (initial value of c_s: 0)
STEADY: Derivative of Equation 4 with respect to Variable c_e (initial value of c_e: 0)
STEADY: Derivative of Equation 8 with respect to Variable c_e (initial value of c_e: 0)
STEADY: Derivative of Equation 9 with respect to Variable c_e (initial value of c_e: 0)
STEADY: Derivative of Equation 12 with respect to Variable d (initial value of d: 0)
STEADY: Derivative of Equation 14 with respect to Variable b (initial value of b: 0)
STEADY: Derivative of Equation 7 with respect to Variable r_d (initial value of r_d: 0)
STEADY: Derivative of Equation 12 with respect to Variable r_d (initial value of r_d: 0)
STEADY: Derivative of Equation 15 with respect to Variable r_d (initial value of r_d: 0)
STEADY: Derivative of Equation 8 with respect to Variable r_b (initial value of r_b: 0)
STEADY: Derivative of Equation 10 with respect to Variable pi (initial value of pi: 0)
STEADY: Derivative of Equation 12 with respect to Variable pi (initial value of pi: 0)
STEADY: Derivative of Equation 20 with respect to Variable pi (initial value of pi: 0)
STEADY: Derivative of Equation 20 with respect to Variable y (initial value of y: 0)
STEADY: Derivative of Equation 9 with respect to Variable q_h (initial value of q_h: 0)
STEADY: Derivative of Equation 10 with respect to Variable q_h (initial value of q_h: 0)
STEADY: Derivative of Equation 3 with respect to Variable a (initial value of a: 0)
STEADY: Derivative of Equation 4 with respect to Variable a (initial value of a: 0)
STEADY: Derivative of Equation 21 with respect to Variable a (initial value of a: 0)
STEADY: Derivative of Equation 9 with respect to Variable eps_h (initial value of eps_h: 0)
STEADY: Derivative of Equation 22 with respect to Variable eps_h (initial value of eps_h: 0)
STEADY: Derivative of Equation 14 with respect to Variable k (initial value of k: 0)
STEADY: Derivative of Equation 17 with respect to Variable k (initial value of k: 0)
STEADY: Derivative of Equation 15 with respect to Variable i (initial value of i: 0)

2

Hi,

Can you try again to upload the code? I have just increased your permission level, you should be able to upload files now.

We (the Dynare Team) do not yet support Occbin… But maybe others will have some ideas about this. Normally you should have exactly the same error with stoch_simul (since the static model should be the same).

Best,
Stéphane.

3

Please find enclosed my files with a small description of what each file does

1)deficitbinding.mod - a mod file that contains the model in regime 1 (static model)

  1. deficitnotbinding.mod - alternative mod file (regime 2)

  2. paramfile_deficit - matlab file containing parameters

  3. deficit_steadystate.m - matlab file containing steady states

  4. runsim_deficit - main file that is to be run.

  5. deficit.mod- for reference I am also enclosing the mod file that has the static model and runs errorless in dynare.

Please guide as to what should I do? Why does the model produce basic errors in occbin when it runs errorless in dynare.

Thanks
Steve

.deficitbinding.mod (2.3 KB)
deficitnotbinding2.mod (2.3 KB)
paramfile_deficit.m (390 Bytes)
deficit_steadystate.m (573 Bytes)
runsim_deficit.m (2.9 KB)
deficit.mod (2.9 KB)