Stochastic/risky steady state using occbin

Dear All,

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.

No, that is not feasible. You may want to check out DynareOBC, which may be suited for this.

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?

Should I tag @cfp in this thread?

Thank you again.

Did you use the package from

?

Thank you for checking in. Yes, I used this dynareOBC release.
Best

Then what is the error message you are getting?

You can try the “firstorderaroundmean” or “firstorderaroundrss” options with DynareOBC. These should get you roughly what you want.

Thank you for the follow up. This is the error message:

Error using dynareOBCCore
Failed reading Dynare output. This is usually caused by an incorrect command line option.

Error in dynareOBCSetup (line 297)
dynareOBC_ = dynareOBCCore( InputFileName, basevarargin, dynareOBC_, @() EnforceRequirementsAndGeneratePath( Update, OriginalPath, CurrentFolder, dynareOBCPath, InputFileName, varargin{:} ) );

Error in dynareOBC (line 711)
dynareOBCSetup( OriginalPath, CurrentFolder, dynareOBCPath, InputFileName, varargin{:} );

I get this error by just typing “dynareOBC AB06.mod” in the AdamBilli2006’s folder.

Best

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.

Error in dynareOBCSetup (line 297)
dynareOBC_ = dynareOBCCore( InputFileName, basevarargin, dynareOBC_, @() EnforceRequirementsAndGeneratePath( Update, OriginalPath, CurrentFolder, dynareOBCPath, InputFileName, varargin{:} ) );

Error in dynareOBC (line 711)
dynareOBCSetup( OriginalPath, CurrentFolder, dynareOBCPath, InputFileName, varargin{:} );

Best

Do you have order=2 or order=3 in your Mod file?

Thank you for following up. The order of approximation used doesn’t matter. The .mod file doesn’t run regardless of order=1, 2, or 3.

The error message is the same in all cases, as I described above.

Best

Please email me your MOD file to my personal email (see my website). (This is Tom Holden.)

Thank you for the quick reply. I have just sent you an email to your gmail account.

Best

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.

@jpfeifer It does look like a bug that Dynare 4.5.7 is missing from that folder.

@cfp No, you are using the wrong link to the archived website. The correct one would be
https://www.dynare.org/release/windows/

Thanks @jpfeifer . There you go @JamAl

Thank you for the quick follow-up, Professor Pfeifer. When I Googled it, I could find only the other link copied in the previous message.

Best

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.)

Thank you, Pfeifer and Holden.

Best