# Question about ZLB simulation

**URL:** <https://forum.dynare.org/t/question-about-zlb-simulation/21015>\
**Category:** Occbin\
**Created:** [3 September 2022 04:50 UTC](https://forum.dynare.org/t/question-about-zlb-simulation/21015 "2022-09-03T04:50:34Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![louisvalentines](https://forum.dynare.org/letter_avatar_proxy/v4/letter/l/dec6dc/32.png) [@louisvalentines](https://forum.dynare.org/u/louisvalentines)\
**Post date:** [3 September 2022 04:50 UTC](https://forum.dynare.org/t/question-about-zlb-simulation/21015/1 "2022-09-03T04:50:34Z")

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Dear professor, I use Occbin in Dynare 5.2 to simulate the effect of ZLB, then I get this picture.

 ![Screenshot 2022-09-03 at 12.40.36](https://forum.dynare.org/uploads/default/original/2X/8/8b65a4eb604f87c525288b18e60a65a2ebca3078.png)  
I’m confused about the IFRs of variable r. It means that if a shock drag the rate into ZLB then rate will keep, for example at least 10 periods, in zero. But if rate does not constraint by ZLB, and dips into negative region , 7 periods after, it will raise above zero. In other words, two simulation paths have different periods is appropriate?  
This is my code,  
[baseline\_model.mod](https://forum.dynare.org/uploads/short-url/gZW9WPNnA9eHGp2nefYfy2xXDfG.mod) (5.0 KB)

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**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\
**Post date:** [3 September 2022 06:58 UTC](https://forum.dynare.org/t/question-about-zlb-simulation/21015/2 "2022-09-03T06:58:16Z")

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Yes, that is expected. The shock propagates differently with the ZLB and can cause the ZLB to bind for a longer period of time as the central bank cannot effectively counteract the shock.

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**Author:** ![louisvalentines](https://forum.dynare.org/letter_avatar_proxy/v4/letter/l/dec6dc/32.png) [@louisvalentines](https://forum.dynare.org/u/louisvalentines)\
**Post date:** [3 September 2022 07:13 UTC](https://forum.dynare.org/t/question-about-zlb-simulation/21015/3 "2022-09-03T07:13:13Z")

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Thank you professor, I get it.

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**Author:** ![pavlos](https://forum.dynare.org/letter_avatar_proxy/v4/letter/p/ac8455/32.png) [@pavlos](https://forum.dynare.org/u/pavlos)\
**Post date:** [4 March 2024 19:12 UTC](https://forum.dynare.org/t/question-about-zlb-simulation/21015/4 "2024-03-04T19:12:20Z")

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Hello. Is it possible to upload an explanation of the equations and the variables/parameters used in the .mod file. It is very difficult to understand what each one of them means.

Thank you in advance