I am trying to estimate a NK model with an occasionally binding constraint and a zero lower bound. However, the code generates an error message that reads “IVF: The solver returned with an error code.” The model is based on Jermann and Quadrini(2012), which investigates the macroeconomic effects of financial shocks. The code is from the Pfeifer’s replication package. Could you provide some guidance on how to handle this type of problem?
Attached contains the codes and data.