Optimal Simple Rule (OSR) - Restricting Coefficients

Dear all,

I am using the OSR command to solve for the optimal simple rule. In doing so, I would like to restrict the coefficients to lie in a specified interval. Otherwise I end up having 4-digit coefficients in the Taylor rule.

Is there any way to accomplish that?

Many thanks
Dom

There is no straightforward way of doing this with Dynare. The implementation of osr uses an unconstrained optimization. You need to hack the code and replace the unconstrained minimization by a constrained one.

Best,