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 FA_Occbin.mod.
Does anyone know why I get no responses at all (not just in piece-wise linear but also in linear) for capital quality shock e_ksi with 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.
The way Dynare 5.1 prints out the regime history with Occbin is slightly different when the shock is hit once at period 1. Using the same file I attached above FA_Occbin.mod (attached again), FA_Occbin.mod (6.3 KB)
Got it. Thank you! I thought it was some kind of a bug because the display looked a little different from what the dynare manual said. Thank you again!