At a minimum, the constraint should be that
name 'ZLB'; bind r<=-log(1/beta);
not
name 'ZLB'; bind i<=-log(1/beta);
because at the ZLB you fix i=log(1/beta)
.
A smaller shock works on my machine but already makes variables explode to huge values:
model3_occ.mod (2.4 KB)