I was looking at the new version of Dynare and how it works with Occbin. As an example, I took the Gertler and Karadi (2011) sample code
FA.mod and add ZLB on interest rate in
Does anyone know why I get no responses at all (not just in piece-wise linear but also in linear) for capital quality shock
occbin_solver? The same size of the shock gives me responses with standard
stoch_simul. The case with other shocks (e.g. productivity) seems to be fine. It is just the capital quality shock.
Thanks in advance!