OCCBIN: Stochastic_solvers: Hessian is equal to zero

jpfeifer 12 February 2023 17:46 2

Please see

Implementing ZLB in Ireland (2004) Occbin

Your constraint is wrong. The ZLB does not bind when r=0 and therefore the interest rate is in steady state. Rather, it can fall by 1-1/beta. See also

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