I’m running a program to figure out the simplest optimal discretionary policy, but Matlab showed me these errors:
discretionary_policy_1 (line 71)
discretionary_policy: the objective function must have zero first order derivatives
stoch_simul (line 82)
[oo_.dr,ys,info] = discretionary_policy_1(oo_,options_.instruments);
discretionary_policy (line 25)
info = stoch_simul(var_list);
(line 163)
discretionary_policy(var_list_);
dynare (line 235)
evalin(‘base’,fname) ;
My objective function is really simple and purely quadratic, I don’t know why I got these errors, could you help me with this? I have attached my mod file.Q4.mod (880 Bytes)