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 …

Problems with OCCBIN

jpfeifer 6 August 2023 08:28 2

See

Implementing ZLB in Ireland (2004) Occbin

Your constraint is wrong. The ZLB does not bind when r=0 and therefore the interest rate is in steady state. Rather, it can fall by 1-1/beta. See also

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