Dynamic simulations using OccBin


I have a model in which the ZLB condition on nominal interest rates is occasionally binding. To solve the model, I therefore use the OccBin toolkit.

However, I am trying to simulate my model over e.g. 200 periods, but my problem is that I do not know how to do this using OccBin. After doing a simple simulation with a liquidity shock to my model of a particular size, the endo_simul matrix in my oobase_ is empty.

Has anyone tried to do this?

Hi kons-nl,

You need to define the number of periods to use in the simulations in the options of the solver.

For example, if you go to the model_new_keynesian folder of the OccBin folder, open fv.mod,
add periods=200 to the solver called at line 54, and run the model, you will find the simulated endogenous variables in field endo_simulof structure oobase_. in your workspace :slight_smile:

Hi cmarch

I actually made a mistake in the question above, I want get the endo_simul of structure oo_ (the solution for the model with the binding ZLB constraint). I tried to add periods=200 in line 54, but the endo_simul matrix in oo_ is still empty :frowning:

Otherwise, thank you very much for your help!

The model file where the constraint is specified is not solved by simply calling a solver, but only parsed because it is used as an auxiliary file, and therefore its endogenous variables are not simulated. The constraint is enforced by means of the piecewise linear solution method that OccBin uses.

Hi cmarch

Is this something that I cannot do using OccBin, and do I have to use another toolbox, e.g. DynareOBC, to solve the model where the constraint is binding?

Another relevant question: is it possible to extract simulated moments when using OccBin to solve the model?