Perfect foresight failed with lmmcp

Perfect foresight simulations
1

Hi,

I want to solve a model with complementarity slackness conditions using perfect foresight solver and lmmcp methods. The condition is that x >= 0 and when x = 0, the Lagrangian multiplier lambda > 0. I used the following code for the slackness condition:
[mcp, ‘x>0’]
lambda = 0;

Although Dynare told me that it `Failed to solve perfect foresight model’, the transition path it simulated seems fine. Did Dynare actually solve the model or not?

Thanks.

2

Without the codes it is impossible to tell.