Occbin - IRF Graph Problem

Occbin
1

I am still trying to figure out where I am going wrong , since the IRF is not sure where I am going wrong. Please do give me your insights

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Uploading: Project_trail.mod…

2

The upload did not complete. But this shows your constraint was never binding.

3

Thank you for your prompt reply , assistance and your time. Since the constraint is not binding this implies that the shock is small , but when I do increase the variance it says that the model is not solvable.
Thank you again for your time and assistance.

//PREAMBLE: For the parameters and variables


//Variables and Parameters


//Variables:
var 
    y //output
    x 
    c //consumption
    l //labour
    w //wages
    r    //real interest rate 
    dp //inflation 
    o //oil shock
    rnot //notional interest rate 
;

//Shocks:
varexo 
    esp_o// price shock  
    esp_i//interest rate shock
;


//Parameters
parameters 
    BETA //discount 
    GAMMA //autocorrelation of the oil shock
    ETA //labour supply 
    XSS //Markup 
    KTILDE //Calculated Value 
    RHO //Smoothing function for Taylor
    PHIP //Weightage to price
    PHIY  //Weightage to output
    ilb //Zero lower bound
  ;
% parameter values 
BETA = 0.99 ;
ETA =1.01 ;
XSS = 1.2 ;
KTILDE = 0.0015 ;
RHO = 0.5;
PHIP = 1.5 ;
PHIY = 0.125 ;
STDERR_AE = 0.00991;
GAMMA = 0.598;
ilb = -0.0051;


//Model Block
model;

//Euler Equation ( Household)
1/exp(c) = BETA*exp(r-dp(+1)-c(+1)) ;

//Labour Supply:
w = (ETA-1)*l + c ;

//Price Shock:
o = GAMMA*(o(-1)) + esp_o ;

//Philips Curve: ( Including Cost Push - price Shock)
dp = BETA*dp(+1) - KTILDE*(x-log(XSS)) + o;

//Taylor Rule : 
r= RHO*r(-1) + (1-RHO)*(PHIP)*dp + (1-RHO)*PHIY*y +(1-RHO)*log(1/BETA)+esp_i  ;
[name='Deposite rate',relax = 'ZLB']
rnot = r ;
[name='Deposite rate',bind = 'ZLB']
rnot = ilb;
//Labour Demand:
w = y - x - l ;


//Production function constraint: 
y=l;

//Resource Constraint:
y=c;

end ;



steady_state_model;



end;


occbin_constraints;
name 'ZLB'; bind rnot<=ilb; 
end;   


shockssequence =[-0.2,-0.2,-0.2];
shocks(surprise,overwrite);
var eps_o;
periods 1:3;
values (shockssequence);
end;


steady;
check;
resid;

occbin_setup(simul_maxit = 150, simul_periods=30);
occbin_solver;
occbin_graph;
4

I think you have the same problem as