I am trying to replicate Sim and Wu “Evaluating Central Banks’ Tool Kit” paper. Before dealing with the OCCbin, I was hoping I could solve in dynare the model without the ZLB constraint. I solved the non-stochastic steady-state functions by hand and entered them in the steady_state.m file (see attached). I then entered the 50 equations as provided by the authors in model block.
My challenge is I keep getting several non-zero Residuals of the static equations. Any help would be greatly appreciated.paramfile_sm1.m (636 Bytes) sm.mod (14.5 KB) sm1_steadystate.m (3.5 KB)