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.
I’m trying to download an older version of Dynare compatible with dynareOBC. However, when I do it using the website Index of /release/windows, the URL is not found, or the downloaded version doesn’t proceed with the installation. (Version dynare-4.5.6-win.exe is the only one I could download to my computer.)
Could you please assist me with this? I appreciate any follow-up on this request.
I solved the issue. I had to drop from path the newer version of Dynare I currently use and add an older version to path instead. (I’m using Dynare 4.5.7.)