Ramsey constraints in perfect foresight (lmmcp)


I was wondering about how ramsey_constraints works in perfect foresight solver with lmmcp. So I took the code ramsey1.mod from the post below

and added an ad-hoc constraint to the problem

r > -0.02;

Then I changed it to be perfect-foresight and used perfect_foresight_solver(lmmcp); for the solver. The code works fine, but it seems like the constraint is not imposed. Would you please take a look when you get a chance? I am using Dynare 4.6.4.

Thank you!

ramsey2.mod (3.4 KB)

You must not use model(linear) as your model is now nonlinear.

Thanks for your reply! I still get the same result after correcting it. Is there something else wrong?

With your shock size, the constraint never becomes binding.