Problem with OCCBIN

Occbin
1

Hello, i am trying to run the code for the paper of Sims and Wu (2020 JME) “The Central Bank Toolkit”. I can run it without problem for the case of no ZLB binding.

But when it is occasionally binding, and I have to call OCCBIN toolkit, I have the following problem:

Error using eval
Must be a text scalar.

Error in solve_one_constraint (line 44)
eval([Mbase_.param_names(i_indx_,:),’= M_.params(i_indx_);’]);

When running the first simulation

[sim_MP] = …
solve_one_constraint(modnam,modnamstar,…
constraint, constraint_relax,…
baseline,irfshock,nperiods,maxiter);

I have tried with every version of OCCBIN (found 3) + 5 versions of Dynare, and I always get that problem.

I attach the .mod and matlab files, that are in Sims website.
execute_sw2020_zlb.m (11.9 KB)
sw2020_zlb.mod (7.7 KB)

Thank you.

2

Where did you get the different Occbin versions from? The master-branch at GitHub - JohannesPfeifer/Occbin_update should be compatible with 4.6 for example. You also did not provide the sw_2020.mod for the baseline case.

3

Now I tried with the updated version you provided and get this error. Seems I will have to try for different parameter values. I attach the baseline scenario mod + matlab. I used dynare 5.0 + updated OCCBIN you provided.
execute_sw2020.m (6.7 KB)
sw_2020.mod (7.8 KB)

Error using print_info (line 32)
Impossible to find the steady state (the sum of square residuals of the static equations is
0.9125). Either the model doesn’t have a steady state, there are an infinity of steady states, or
the guess values are too far from the solution

Error in steady (line 102)
print_info(info,options_.noprint, options_);

Error in sw2020_zlb.driver (line 797)
steady;

4

Are you maybe missing their steady state file?

5

I don’t think so. Those are the 4 files. Thank you.

6

If you mean the Sims & Wu (2021) paper with the title “Evaluating Central Banks’ tool kit: Past, present, and future”, I can help you out.
I replicated all figures in that paper some time ago under Dynare 4.6.4.

7

Thank you Max! I can replicate everything under the non-ZLB case.

My problem is that (using both 4.6.4 until 5.0 versions) I always have problems with steady state.

Can you share your .mod and matlab files for the ocasionally binding ZLB constraints?

Thank you

8

Under Windows with Dynare 4.6.4 installed under 'C:/dynare/4.6.4/matlab'
you only have to call the respective main files to replicate the desired figure from Sims & Wu (2021).

The files are just an updated version of the replication codes from the Homepage of Jing Cynthia Wu.
The design of the code changed a bit because I take advantage of some of Dynares capabilities.
I will send the files via PM.

9

Hello Dr. Pfeifer,

I have used your updated Occinbin toolkit in dynare 4.6.4. I have got steady state result but I also got the error as follow:

Unrecognized field name “ys”.
Error in solve_one_constraint (line 49)
eval([Mbase_.endo_names{i,:} 'ss = oobase.dr.ys(i); ']);
Error in runsim (line 38)
solve_one_constraint(modnam,modnamstar,…

Could you please let me know what the problem is? Thank you!

10

Given that we now ship OccBin with Dynare 5, please try that one.

11

Thank you very much for your reply. I am using Dynare 5.1 now. But since I am having more than one shocks and I want to plot simulations to all these shocks with and without ZLB bindings, I don’t know how to structure the ‘shocks(surprise)’ block.

usdsge.mod (11.5 KB)

12

Hi, sorry to disturb you.I’m doing the DSGE model with ZLB,and I want to examine the effct of the combination of two shocks.Now I meet the same problem with you,have your problem solved? If so,may I plea you to share some experience with me？

13

It seems you have solved your own problem in

14

Yes. Finally I got it .Thanks for your help.

15

Hello Max,

May I ask you to share the advanced code for the paper with me as well?

Kind regards,
Daria

16

See my pm.