dynareOBC error

Dynare contributions and examples
1

Hi,everyone! :grinning:
When I use the toolbox of DynareOBC ,after solving the steady state of the model,the window of MATLAB gives me these error message:

The risky steady state of one of the zero lower bounded variables had an unexpected sign.
Attempting to approximate around an alternative point.

HOMOTOPY mode 3: launching solver at initial point…
HOMOTOPY mode 3: successful step, now jumping to final point…
HOMOTOPY mode 3: failed step, now dividing increment by 2…
HOMOTOPY mode 3: successful step, now multiplying increment by 2…
HOMOTOPY mode 3: failed step, now dividing increment by 2…

I don’t know the way to debug the problem during using the DynareOBC.
Thanks a lot!

2

Maybe @cfp can help.

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3

It sounds like your model’s non-stochastic steady state has different constraints binding to at the risky steady state. This rare case can be hard for DynareOBC to handle. I’ve only seen it in sudden stops models.

Are your shocks calibrated to reasonable standard deviations? If they are too large, that can lead to this issue. Failing that, you could fall back to order=1 where this case cannot happen.

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