Optimal monetary parameter in non-linear model

FMSxiao2cd.mod (3.3 KB)
FMSxiao2cd_ss.m (2.2 KB)
FMSxiao2cd_steadystate.m (1.5 KB)
param_xiao2c.m (977 Bytes)
welfare_objective.m (753 Bytes)
dear professor, I am trying to find the optimal monetary policy rule in a non-linear model. I have referred to the post " Optimal policy parameters in a non-linear model" and try to use the code in the post, However, it reports error, could you please help me to figure out the problem. Thank you.

Try the attached modifications in Dynare 5.3:
welfare_objective.m (750 Bytes)
FMSxiao2cd.mod (3.3 KB)
FMSxiao2cd_steadystate.m (1.5 KB)
FMSxiao2cd_ss.m (2.2 KB)

Dear professor, the modified code could work well, Many thanks.
However, I still have a question. The result shows that the optimal persistence coefficient of monetary policy is 1, which means that the coefficient touches the upper bound. I wonder whether this is correct?

You can try to set these parameters manually and see whether welfare really is that much better.