Problems with OCCBIN

Occbin
1

Hi everybody! I’m currently attempting to implement a ZLB constraint with OCCBIN in a very simple NK model context. However, when I run the code, I encounter the following error message:

“Occbin: Simulation did not converge, increase maxit or check_ahead_periods.”

Can anyone offer some assistance or guidance to resolve this issue?

The code is as follows:

var p, x, i, d, s;

varexo u, e;

parameters sigma beta, alpha, lambda, a, b, rhod, rhos;

sigma = 0.5;

beta = 0.99;

alpha = 0.2;

lambda = 0;

a = 0.5 ;

b = 1.5;

phi = 0.1;

rhod = 0.8;

rhos = 0.8 ;

model(linear);

[name='policy rate',bind='ZLB']

i=0;

[name='policy rate',relax='ZLB']

i= a*x + b*p;

x = lambda*x(-1)+(1-lambda)*x(+1) - sigma*(i - p(+1)) + d;

p = beta*(lambda*p(-1)+(1-lambda)*p(+1)) + alpha*x + s;

d = rhod*d(-1) - e ;

s = rhos*s(-1) - u ;

end;

occbin_constraints;

name 'ZLB'; bind i<= 0 ; relax i> 0;

end;

steady;

check;

resid;

shocks(surprise);

var u;

periods 1;

values 0.2;

end;

occbin_setup(simul_periods = 40, simul_check_ahead_periods = 200,simul_maxit = 200);

occbin_solver;

occbin_graph(noconstant) x p i;
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