Thank you Professor so much for your help. I run into two question.
- When I correct the bind line with 1e-8
occbin_constraints; name 'ZLB'; bind v2<=-1e-8; relax exp(xi)*exp(Q)*(exp(fm)-kappa*exp(fm)/exp(Pi))>Psi*exp(pk)*exp(Ih); name 'rate'; bind RTR<=1; relax RTR>1; end;
the error exists again.
I thought it might be that I still wrongly set the two binding lines so that the ZLB falls between two regimes. Am I correct? But I don’t know how to correctly set the binding line for borrowing constraint to avoid the oscillation issue. It seems much easier for rate ZLB. Could you please give me some hint?
- When I run the model with the typo 1e8 (because I want to know what’s exactly the results like) and then adjust the options_.occbin.smoother.max_number_of_iterations=30, the smoother iteration only stopped at 21 and reported no convergence. Is that correct? Why didn’t smoother iterated until 30 times?
Thank you so much for your constant help. This is my newest mod file.
test_estimation 2.zip (1.5 MB)