I have a model in which the occasionally binding constraint is slack in the steady state. The model is too complex to be solved using global solutions. Can I combine a risky/stochastic steady state approach with the occbin package to circumvent the precautionary behavior issue in a log-linearized solution?
Thank you for the quick reply, Professor Pfeifer. Unfortunately, I cannot run any example from the DynareOBC folder. Is it because we have to stick to Dynare 4.5 version?
Thank you for following up. When I type “dynareOBC AB06.mod FirstOrderAroundMean” or “dynareOBC AB06.mod FirstOrderAroundRSS”, I get the following error message:
Error using dynareOBCCore
Failed reading Dynare output. This is usually caused by an incorrect command line option.