Occbin solver loops between two regimes

[jpfeifer]

Often, it’s a numerical issue. See

Occbin: "increase maxit or check_ahead_periods" with very high maxit and check_ahead_periods

Part of the problem is a bug that will crash Occbin whenever something goes wrong. See Provide error handling to piece-wise linear Kalman filter (#1854) · Issues · Dynare / dynare · GitLab The other issue is your specification. You had occbin_constraints; name 'ELB'; bind iT - 1e-06*vr_s1*Ups < 0.001247663; relax iT - 1e-06*vr_s1*Ups > 0.001247663; end; So the ZLB exactly binding will fall between the two regimes, creating oscillations. Using % load OccBin occbin_constraints; name…