NKM, ZLB, Heterogeneous Expectations, dynareOBC

Dynare contributions and examples
1

@cfp @jpfeifer
Hello everyone!

In this model, I have added heterogeneous expectations to the nkm and would like to investigate it at the ZLB. The Taylor rule is applied.
Unfortunately, dynareOBC does not find a solution.

I would be very pleased about solution proposals and suggestions!
model.mod (2.9 KB)
Error message.txt (2.4 KB)

2

Ensure your model works in standard Dynare before trying DynareOBC.

3

@cfp
The code without ZLB condition works:
comparison.mod (2.9 KB)
comparison output.txt (4.0 KB)

4

They are not the same. Your comparison has your steady state model block commented out. You cannot have both an initval and a steady state model block.

Just delete it in the DynareOBC version if it’s not needed.

If you want to be on the safe side, also:

  1. delete all variable names, latex etc,
  2. delete all equation tags,
  3. delete all code commented out with MATLAB style comments, not Dynare style ones.
5

The correct test is to run exactly the same MOD file that you want to use with DynareOBC with normal Dynare.

6

@cfp
I seem to get an error when I try the steady command in my dynareOBC script
with ZLB.txt (3.9 KB)