DSGE and occbin with negative value

[jpfeifer]

Most often, you have to live with it. See the discussion at

Prior distribution and strange simulation results

The problem is the solution technique (perturbation), where you are approximating the model with a polynomial. There is no way to restrict a polynomial to be bounded. So as long as you work with perturbation techniques, there is always some probability of simulations violating any bound. The problem will be bigger, the more volatile the shocks are as they will put you further away from the steady state.