Lmmcp: starting from a solution

Perfect foresight simulations
1

Dear Professor Pfeifer,
I start from the solution without the constraint, which works perfectly, to solve my model as following

perfect_foresight_setup(periods=250);
perfect_foresight_solver(tolf=1e-8);
perfect_foresight_solver(lmmcp);

but it is still not enough for the constraint

[mcp = ‘phis@{i} < 2.50’]

so I was wondering if I can use the solution of [mcp = ‘phis@{i} < 2.55’] (instead of the model with no constraint, for example) to solve [mcp = ‘phis@{i} < 2.50’]. Is it possible? and if yes, what are the right codes?
Thank you so much,

Kind regards,
Leo

2

You would need to do this in a separate mod-file. After running the model with the lower constraint, Dynare will save the results in oo_.endo_simul in the _results.mat-file.
In the one with the tighter constraint, first call perfect_foresight_setup, then load the results.

In a nutshell:

3

Thank you so much. So just to be sure:
First I run the model (let’s say model_1) with [mcp = ‘phis@{i} < 2.55’], then the mod file of model_2 with [mcp = ‘phis@{i} < 2.50’] in which we have

perfect_foresight_setup(periods=250);
load model_1_results oo_.endo_simul;
perfect_foresight_solver(lmmcp);

is this correct?
Thank you for your time
Kind regards,
Leo

4

Do

perfect_foresight_setup(periods=250);
temp=load('model_1_results');
oo_.endo_simul=temp.oo_.endo_simul;
perfect_foresight_solver(lmmcp);
1 Like