Lmmcp solver in mixed shocks (det and stochastic)

Hello everyone,

I am trying to solve a non-linear model that has slackness conditions. I was able to solve the model for a deterministic shocks using ‘lmmcp’ solver. However, including both a stochastic shock and the deterministic shocks, I am now getting the following error message. The excerpt of the code that includes the MCP solver that I used to solve the model is as below. There must be a good example that I can follow, any suggestion, please?

Many thanks: Shreekar

The solver code:
stoch_simul(solve_algo=10, order=1) ;
forecast(periods = 200) ;

The error message:

Reference to non-existent field ‘lb’.

Error in dynare_solve (line 209)
[x,fval,exitflag] = lmmcp(func,x,olmmcp.lb,olmmcp.ub,olmmcp,varargin{:});

Error in evaluate_steady_state (line 223)
[ys,check] = dynare_solve(@static_problem,…

Error in resol (line 104)
[dr.ys,M.params,info] = evaluate_steady_state(oo.steady_state,M,options,oo,~options.steadystate.nocheck);

Error in stoch_simul (line 89)
[oo_.dr,info,M_,options_,oo_] = resol(0,M_,options_,oo_);

I would need to see the full code.

I have attached the model code.

ge_model_lab.mod (4.7 KB)

Thank you in advance.

The problem is that mcp-tags and their solvers do not work with stoch_simul. You cannot use perturbation solutions for non-differentiable problems.

Okay. Thanks a lot for this information. The Dynare manual may need to include this new information. Is their other way to solve my problem then? For example: MCP - PATH? There is this paper https://link.springer.com/article/10.1007/s10614-019-09921-y but PATH is a licensed solver :frowning:

Thanks again,

Again, it’s not about the solver but the solution technique. The reference you provide uses projection, not perturbation.