Error in discretionary policy


#1

Hello everyone,
I am trying to compute the optimal policy under discretion for the SW model and I get this error:

Error using print_info (line 117)
Discretionary policy: NaN elements are present in the solution. Procedure failed.

I just get this error if I introduce in the objective function the variable yf. Nevertheless, for the same model, the optimal policy under commitment allows me to consider yf.

Thank you in advanceusmodel.mod (5.3 KB)


#2

That is hard to tell. I am no expert on optimal policy. There may be a good economic reason why the procedure fails to solve under discretion.


#3

Just got the same error. Not for the same .mod-file, but for a different version of SW from Del Negro et al. (AEJM, 2015).

US_DNGS_SW15.mod (7.5 KB)

Not sure what to make out of this.


#4

@Phil Debugging models of this size is close to impossible, because you never know whether there is a technical problem or an economic reason for the approach failing. Also, I cannot run your file, because you are loading a file lambda you did not provide.


#5

Sorry about that. This is just a parameter in the planner objective. This file should run without problems.

US_DNGS_SW15.mod (7.5 KB)