diff --git a/matlab/PosteriorIRF_core1.m b/matlab/PosteriorIRF_core1.m
index ffdbad005925ce99ae821fa3a0961c6756a4b8ce..6c021576f6e0a7d21dd3c3cd3369edee5fdc1e3a 100644
--- a/matlab/PosteriorIRF_core1.m
+++ b/matlab/PosteriorIRF_core1.m
@@ -145,11 +145,7 @@ while fpar<B
end
stock_param(irun2,:) = deep;
set_parameters(deep);
- if options_.discretionary_policy
- [dr,info,M_,options_,oo_] = discretionary_policy_1(options_.instruments,M_,options_,oo_);
- else
- [dr,info,M_,options_,oo_] = resol(0,M_,options_,oo_);
- end
+ [dr,info,M_,options_,oo_] =compute_decision_rules(M_,options_,oo_);
oo_.dr = dr;
if info(1)
nosaddle = nosaddle + 1;
diff --git a/matlab/compute_decision_rules.m b/matlab/compute_decision_rules.m
new file mode 100644
index 0000000000000000000000000000000000000000..372a7fa1813c5a4b73a9c629f4a38f3f2028cadc
--- /dev/null
+++ b/matlab/compute_decision_rules.m
@@ -0,0 +1,36 @@
+function [dr,info,M_,options_,oo_] =compute_decision_rules(M_,options_,oo_)
+% function [dr,info,M_,options_,oo_] =compute_decision_rules(M_,options_,oo_)
+% INPUTS
+% - M_ [structure] Matlab's structure describing the model (M_).
+% - options_ [structure] Matlab's structure describing the current options (options_).
+% - oo_ [structure] Matlab's structure containing the results (oo_).
+%
+% OUTPUTS
+% - dr [structure] Reduced form model.
+% - info [integer] scalar or vector, error code.
+% - M_ [structure] Matlab's structure describing the model (M_).
+% - options_ [structure] Matlab's structure describing the current options (options_).
+% - oo_ [structure] Matlab's structure containing the results (oo_).
+
+% Copyright (C) 2020 Dynare Team
+%
+% This file is part of Dynare.
+%
+% Dynare is free software: you can redistribute it and/or modify
+% it under the terms of the GNU General Public License as published by
+% the Free Software Foundation, either version 3 of the License, or
+% (at your option) any later version.
+%
+% Dynare is distributed in the hope that it will be useful,
+% but WITHOUT ANY WARRANTY; without even the implied warranty of
+% MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the
+% GNU General Public License for more details.
+%
+% You should have received a copy of the GNU General Public License
+% along with Dynare. If not, see <http://www.gnu.org/licenses/>.
+
+if options_.discretionary_policy
+ [dr,info,M_,options_,oo_] = discretionary_policy_1(options_.instruments,M_,options_,oo_);
+else
+ [dr,info,M_,options_,oo_] = resol(0,M_,options_,oo_);
+end
diff --git a/matlab/discretionary_policy.m b/matlab/discretionary_policy/discretionary_policy.m
similarity index 63%
rename from matlab/discretionary_policy.m
rename to matlab/discretionary_policy/discretionary_policy.m
index faff08ba9f8bf8fe138481f2f4297577b779cc5b..778d1789db328591ee1aaa01ac997397a7d97cb4 100644
--- a/matlab/discretionary_policy.m
+++ b/matlab/discretionary_policy/discretionary_policy.m
@@ -1,4 +1,15 @@
function [info, oo_, options_] = discretionary_policy(M_, options_, oo_, var_list)
+% function [info, oo_, options_] = discretionary_policy(M_, options_, oo_, var_list)
+% INPUTS
+% - M_ [structure] Matlab's structure describing the model (M_).
+% - options_ [structure] Matlab's structure describing the current options (options_).
+% - oo_ [structure] Matlab's structure containing the results (oo_).
+% - var_list [cell] list of variables
+%
+% OUTPUTS
+% - info [integer] scalar or vector, error code.
+% - oo_ [structure] Matlab's structure containing the results (oo_).
+% - options_ [structure] Matlab's structure describing the current options (options_).
% Copyright (C) 2007-2019 Dynare Team
%
@@ -17,10 +28,7 @@ function [info, oo_, options_] = discretionary_policy(M_, options_, oo_, var_lis
% You should have received a copy of the GNU General Public License
% along with Dynare. If not, see <http://www.gnu.org/licenses/>.
-if options_.loglinear
- % Ensure it's ok to ignore options_ returned from stoch_simul. #1197
- error('discretionary_policy is not compatible with `loglinear` option set to 1')
-end
+M_=discretionary_policy_initialization(M_,options_);
origorder = options_.order;
options_.discretionary_policy = 1;
diff --git a/matlab/discretionary_policy/discretionary_policy_1.m b/matlab/discretionary_policy/discretionary_policy_1.m
new file mode 100644
index 0000000000000000000000000000000000000000..04c88659746748e6cb246c60c9a26c1dbcc742a3
--- /dev/null
+++ b/matlab/discretionary_policy/discretionary_policy_1.m
@@ -0,0 +1,125 @@
+function [dr, info, M_, options_, oo_]=discretionary_policy_1(Instruments, M_, options_, oo_)
+% Higher-level function for solving discretionary optimal policy
+% INPUTS
+% - Instruments [cell] array containing instrument names
+% - M_ [structure] Matlab's structure describing the model (M_).
+% - options_ [structure] Matlab's structure describing the current options (options_).
+% - oo_ [structure] Matlab's structure containing the results (oo_).
+%
+% OUTPUTS
+% - dr [structure] Reduced form model.
+% - info [integer] scalar or vector, error code.
+% - M_ [structure] Matlab's structure describing the model (M_).
+% - options_ [structure] Matlab's structure describing the current options (options_).
+% - oo_ [structure] Matlab's structure containing the results (oo_).
+
+% Copyright (C) 2007-2020 Dynare Team
+%
+% This file is part of Dynare.
+%
+% Dynare is free software: you can redistribute it and/or modify
+% it under the terms of the GNU General Public License as published by
+% the Free Software Foundation, either version 3 of the License, or
+% (at your option) any later version.
+%
+% Dynare is distributed in the hope that it will be useful,
+% but WITHOUT ANY WARRANTY; without even the implied warranty of
+% MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the
+% GNU General Public License for more details.
+%
+% You should have received a copy of the GNU General Public License
+% along with Dynare. If not, see <http://www.gnu.org/licenses/>.
+
+persistent Hold
+
+info = 0;
+
+beta = get_optimal_policy_discount_factor(M_.params, M_.param_names);
+
+%call steady_state_file if present to update parameters
+if options_.steadystate_flag
+ % explicit steady state file
+ [~,M_.params,info] = evaluate_steady_state_file(oo_.steady_state,[oo_.exo_steady_state; oo_.exo_det_steady_state],M_, ...
+ options_,false);
+ if info(1)
+ return;
+ end
+end
+[U,Uy,W] = feval([M_.fname,'.objective.static'],zeros(M_.endo_nbr,1),[], M_.params);
+if any(any(isnan(Uy)))
+ info = 64 ; %the derivatives of the objective function contain NaN
+ return;
+end
+if any(any(Uy~=0))
+ if options_.debug
+ non_zero_derivs=find(any(Uy~=0));
+ for ii=1:length(non_zero_derivs)
+ non_zero_deriv_names{ii,1} = M_.endo_names{non_zero_derivs(ii)};
+ end
+ disp_string=[non_zero_deriv_names{1,:}];
+ for ii=2:size(non_zero_deriv_names,1)
+ disp_string=[disp_string,', ',non_zero_deriv_names{ii,:}];
+ end
+ fprintf('\nThe derivative of the objective function w.r.t. to variable(s) %s is not 0\n',disp_string);
+ end
+ info = 66;
+ return;
+end
+
+W=reshape(W,M_.endo_nbr,M_.endo_nbr);
+
+klen = M_.maximum_lag + M_.maximum_lead + 1;
+iyv=M_.lead_lag_incidence';
+% Find the jacobian
+z = repmat(zeros(M_.endo_nbr,1),1,klen);
+z = z(nonzeros(iyv)) ;
+it_ = M_.maximum_lag + 1 ;
+
+if M_.exo_nbr == 0
+ oo_.exo_steady_state = [] ;
+end
+
+[junk,jacobia_] = feval([M_.fname '.dynamic'],z, [zeros(size(oo_.exo_simul)) ...
+ oo_.exo_det_simul], M_.params, zeros(M_.endo_nbr,1), it_);
+if any(junk~=0)
+ info = 65; %the model must be written in deviation form and not have constant terms
+ return;
+end
+
+Indices={'lag','contemp','lead'};
+iter=1;
+for j=1:numel(Indices)
+ A.(Indices{j})=zeros(M_.orig_eq_nbr,M_.endo_nbr);
+ if strcmp(Indices{j},'contemp')||(strcmp(Indices{j},'lag') && M_.maximum_lag)||(strcmp(Indices{j},'lead') && M_.maximum_lead)
+ [~,row,col]=find(M_.lead_lag_incidence(iter,:));
+ A.(Indices{j})(:,row)=jacobia_(:,col);
+ iter=iter+1;
+ end
+end
+B=jacobia_(:,nnz(iyv)+1:end);
+
+%%% MAIN ENGINE %%%
+
+if ~isempty(Hold)
+ [H,G,info]=discretionary_policy_engine(A.lag,A.contemp,A.lead,B,W,M_.instr_id,beta,options_.dp.maxit,options_.discretionary_tol,options_.qz_criterium,Hold);
+else
+ [H,G,info]=discretionary_policy_engine(A.lag,A.contemp,A.lead,B,W,M_.instr_id,beta,options_.dp.maxit,options_.discretionary_tol,options_.qz_criterium);
+end
+
+
+if info
+ return
+else
+ Hold=H; %save previous solution
+ % Hold=[]; use this line if persistent command is not used.
+end
+
+%write back solution to dr
+dr=oo_.dr;
+dr.ys =zeros(M_.endo_nbr,1);
+dr=set_state_space(dr,M_,options_);
+T=H(dr.order_var,dr.order_var);
+dr.ghu=G(dr.order_var,:);
+Selection=M_.lead_lag_incidence(1,dr.order_var)>0;%select state variables
+dr.ghx=T(:,Selection);
+oo_.dr = dr;
diff --git a/matlab/discretionary_policy_engine.m b/matlab/discretionary_policy/discretionary_policy_engine.m
similarity index 100%
rename from matlab/discretionary_policy_engine.m
rename to matlab/discretionary_policy/discretionary_policy_engine.m
diff --git a/matlab/discretionary_policy/discretionary_policy_initialization.m b/matlab/discretionary_policy/discretionary_policy_initialization.m
new file mode 100644
index 0000000000000000000000000000000000000000..2c417f44087f7cccff080b984ae7f321853ab4b0
--- /dev/null
+++ b/matlab/discretionary_policy/discretionary_policy_initialization.m
@@ -0,0 +1,65 @@
+function M_=discretionary_policy_initialization(M_,options_)
+% function M_=discretionary_policy_initialization(M_,options_)
+% INPUTS
+% - M_ [structure] Matlab's structure describing the model (M_).
+% - options_ [structure] Matlab's structure describing the current options (options_).
+%
+% OUTPUTS
+% - M_ [structure] Matlab's structure describing the model (M_).
+
+% Copyright (C) 2020 Dynare Team
+%
+% This file is part of Dynare.
+%
+% Dynare is free software: you can redistribute it and/or modify
+% it under the terms of the GNU General Public License as published by
+% the Free Software Foundation, either version 3 of the License, or
+% (at your option) any later version.
+%
+% Dynare is distributed in the hope that it will be useful,
+% but WITHOUT ANY WARRANTY; without even the implied warranty of
+% MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the
+% GNU General Public License for more details.
+%
+% You should have received a copy of the GNU General Public License
+% along with Dynare. If not, see <http://www.gnu.org/licenses/>.
+
+
+if options_.loglinear
+ % Ensure it's ok to ignore options_ returned from stoch_simul. #1197
+ error('discretionary_policy is not compatible with `loglinear` option set to 1')
+end
+
+% safeguard against issues like running ramsey policy first and then running discretion
+if isfield(M_,'orig_model')
+ M_.endo_nbr = M_.orig_model.endo_nbr;
+ M_.endo_names = M_.orig_model.endo_names;
+ M_.lead_lag_incidence = M_.orig_model.lead_lag_incidence;
+ M_.maximum_lead = M_.orig_model.maximum_lead;
+ M_.maximum_endo_lead = M_.orig_model.maximum_endo_lead;
+ M_.maximum_lag = M_.orig_model.maximum_lag;
+ M_.maximum_endo_lag = M_.orig_model.maximum_endo_lag;
+end
+
+instr_nbr=M_.orig_endo_nbr-M_.orig_eq_nbr;
+
+if instr_nbr==0
+ error('discretionary_policy:: There are no available instruments, because the model has as many equations as variables.')
+end
+if size(options_.instruments,1)< instr_nbr
+ error('discretionary_policy:: There are fewer declared instruments than omitted equations.')
+elseif size(options_.instruments,1)> instr_nbr
+ error('discretionary_policy:: There are more declared instruments than omitted equations.')
+end
+
+instr_id=NaN(size(options_.instruments,1),1);
+for j=1:size(options_.instruments,1)
+ vj=deblank(options_.instruments{j});
+ vj_id=strmatch(vj, M_.endo_names, 'exact');
+ if ~isempty(vj_id)
+ instr_id(j)=vj_id;
+ else
+ error([mfilename,':: instrument ',vj,' not found'])
+ end
+end
+M_.instr_id=instr_id;
diff --git a/matlab/discretionary_policy_1.m b/matlab/discretionary_policy_1.m
deleted file mode 100644
index df38ce4c7ee9dbdd719df57db90cc65554143fd5..0000000000000000000000000000000000000000
--- a/matlab/discretionary_policy_1.m
+++ /dev/null
@@ -1,181 +0,0 @@
-function [dr, info, M_, options_, oo_]=discretionary_policy_1(Instruments, M_, options_, oo_)
-% Higher-level function for solving discretionary optimal policy
-% INPUTS
-% - Instruments [cell] array containing instrument names
-% - M_ [structure] Matlab's structure describing the model (M_).
-% - options_ [structure] Matlab's structure describing the current options (options_).
-% - oo_ [structure] Matlab's structure containing the results (oo_).
-%
-% OUTPUTS
-% - dr [structure] Reduced form model.
-% - info [integer] scalar or vector, error code.
-% - M_ [structure] Matlab's structure describing the model (M_).
-% - options_ [structure] Matlab's structure describing the current options (options_).
-% - oo_ [structure] Matlab's structure containing the results (oo_).
-
-% Copyright (C) 2007-2020 Dynare Team
-%
-% This file is part of Dynare.
-%
-% Dynare is free software: you can redistribute it and/or modify
-% it under the terms of the GNU General Public License as published by
-% the Free Software Foundation, either version 3 of the License, or
-% (at your option) any later version.
-%
-% Dynare is distributed in the hope that it will be useful,
-% but WITHOUT ANY WARRANTY; without even the implied warranty of
-% MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the
-% GNU General Public License for more details.
-%
-% You should have received a copy of the GNU General Public License
-% along with Dynare. If not, see <http://www.gnu.org/licenses/>.
-
-persistent Hold
-
-info = 0;
-
-if isempty(options_.qz_criterium)
- options_.qz_criterium = 1+1e-6;
-end
-
-% safeguard against issues like running ramsey policy first and then running discretion
-if isfield(M_,'orig_model')
- orig_model = M_.orig_model;
- M_.endo_nbr = orig_model.endo_nbr;
- M_.endo_names = orig_model.endo_names;
- M_.lead_lag_incidence = orig_model.lead_lag_incidence;
- M_.maximum_lead = orig_model.maximum_lead;
- M_.maximum_endo_lead = orig_model.maximum_endo_lead;
- M_.maximum_lag = orig_model.maximum_lag;
- M_.maximum_endo_lag = orig_model.maximum_endo_lag;
-else
- M_.orig_model = M_;
-end
-
-beta = get_optimal_policy_discount_factor(M_.params, M_.param_names);
-
-exo_nbr = M_.exo_nbr;
-if isfield(M_,'orig_model')
- orig_model = M_.orig_model;
- endo_nbr = orig_model.endo_nbr;
- endo_names = orig_model.endo_names;
- lead_lag_incidence = orig_model.lead_lag_incidence;
- MaxLead = orig_model.maximum_lead;
- MaxLag = orig_model.maximum_lag;
-else
- endo_names = M_.endo_names;
- endo_nbr = M_.endo_nbr;
- MaxLag=M_.maximum_lag;
- MaxLead=M_.maximum_lead;
- lead_lag_incidence = M_.lead_lag_incidence;
-end
-
-%call steady_state_file if present to update parameters
-if options_.steadystate_flag
- % explicit steady state file
- [~,M_.params,info] = evaluate_steady_state_file(oo_.steady_state,[oo_.exo_steady_state; oo_.exo_det_steady_state],M_, ...
- options_,false);
-end
-[U,Uy,W] = feval([M_.fname,'.objective.static'],zeros(endo_nbr,1),[], M_.params);
-if any(any(isnan(Uy)))
- error(['discretionary_policy: the derivatives of the objective function contain NaN'])
-end
-if any(any(Uy~=0))
- non_zero_derivs=find(any(Uy~=0));
- for ii=1:length(non_zero_derivs)
- non_zero_deriv_names{ii,1} = M_.endo_names{non_zero_derivs(ii)};
- end
- disp_string=[non_zero_deriv_names{1,:}];
- for ii=2:size(non_zero_deriv_names,1)
- disp_string=[disp_string,', ',non_zero_deriv_names{ii,:}];
- end
- fprintf('\nThe derivative of the objective function w.r.t. to variable(s) %s is not 0\n',disp_string)
- error(['discretionary_policy: the objective function must have zero ' ...
- 'first order derivatives'])
-end
-
-W=reshape(W,endo_nbr,endo_nbr);
-
-klen = MaxLag + MaxLead + 1;
-iyv=lead_lag_incidence';
-% Find the jacobian
-z = repmat(zeros(endo_nbr,1),1,klen);
-z = z(nonzeros(iyv)) ;
-it_ = MaxLag + 1 ;
-
-if exo_nbr == 0
- oo_.exo_steady_state = [] ;
-end
-
-[junk,jacobia_] = feval([M_.fname '.dynamic'],z, [zeros(size(oo_.exo_simul)) ...
- oo_.exo_det_simul], M_.params, zeros(endo_nbr,1), it_);
-if any(junk~=0)
- error(['discretionary_policy: the model must be written in deviation ' ...
- 'form and not have constant terms'])
-end
-
-eq_nbr= size(jacobia_,1);
-instr_nbr=endo_nbr-eq_nbr;
-
-if instr_nbr==0
- error('discretionary_policy:: There are no available instruments, because the model has as many equations as variables.')
-end
-if size(Instruments,1)< instr_nbr
- error('discretionary_policy:: There are fewer declared instruments than omitted equations.')
-elseif size(Instruments,1)> instr_nbr
- error('discretionary_policy:: There are more declared instruments than omitted equations.')
-end
-
-instr_id=nan(instr_nbr,1);
-for j=1:instr_nbr
- vj=deblank(Instruments{j});
- vj_id=strmatch(vj, endo_names, 'exact');
- if ~isempty(vj_id)
- instr_id(j)=vj_id;
- else
- error([mfilename,':: instrument ',vj,' not found'])
- end
-end
-
-Indices={'lag','0','lead'};
-iter=1;
-for j=1:numel(Indices)
- eval(['A',Indices{j},'=zeros(eq_nbr,endo_nbr);'])
- if strcmp(Indices{j},'0')||(strcmp(Indices{j},'lag') && MaxLag)||(strcmp(Indices{j},'lead') && MaxLead)
- [~,row,col]=find(lead_lag_incidence(iter,:));
- eval(['A',Indices{j},'(:,row)=jacobia_(:,col);'])
- iter=iter+1;
- end
-end
-B=jacobia_(:,nnz(iyv)+1:end);
-
-%%% MAIN ENGINE %%%
-qz_criterium = options_.qz_criterium;
-solve_maxit = options_.dp.maxit;
-discretion_tol = options_.discretionary_tol;
-
-if ~isempty(Hold)
- [H,G,info]=discretionary_policy_engine(Alag,A0,Alead,B,W,instr_id,beta,solve_maxit,discretion_tol,qz_criterium,Hold);
-else
- [H,G,info]=discretionary_policy_engine(Alag,A0,Alead,B,W,instr_id,beta,solve_maxit,discretion_tol,qz_criterium);
-end
-
-% set the state
-dr=oo_.dr;
-
-if info
- return
-else
- Hold=H; %save previous solution
- % Hold=[]; use this line if persistent command is not used.
-end
-dr.ys =zeros(endo_nbr,1);
-dr=set_state_space(dr,M_,options_);
-order_var=dr.order_var;
-
-T=H(order_var,order_var);
-dr.ghu=G(order_var,:);
-Selection=lead_lag_incidence(1,order_var)>0;%select state variables
-dr.ghx=T(:,Selection);
-
-oo_.dr = dr;
diff --git a/matlab/dynare_config.m b/matlab/dynare_config.m
index ba5c6a839d1ac9715775b5cafa4430d1032e00be..8a08d72b796a844df9a7507f4db05f1e10bfb63c 100644
--- a/matlab/dynare_config.m
+++ b/matlab/dynare_config.m
@@ -61,6 +61,7 @@ p = {'/distributions/' ; ...
'/cli/' ; ...
'/lmmcp/' ; ...
'/optimization/' ; ...
+ '/discretionary_policy/' ; ...
'/accessors/' ; ...
'/modules/dseries/src/' ; ...
'/utilities/doc/' ; ...
diff --git a/matlab/dynare_estimation_init.m b/matlab/dynare_estimation_init.m
index d914964b34c1c01e5051dea3b23e44434bdcfc86..3495a7d04a04825ca72b49aabca0880bc5f1d056 100644
--- a/matlab/dynare_estimation_init.m
+++ b/matlab/dynare_estimation_init.m
@@ -32,7 +32,7 @@ function [dataset_, dataset_info, xparam1, hh, M_, options_, oo_, estim_params_,
% SPECIAL REQUIREMENTS
% none
-% Copyright (C) 2003-2018 Dynare Team
+% Copyright (C) 2003-2020 Dynare Team
%
% This file is part of Dynare.
%
@@ -100,6 +100,14 @@ if length(unique(options_.varobs))<length(options_.varobs)
end
end
+if options_.discretionary_policy
+ if options_.order>1
+ error('discretionary_policy does not support order>1');
+ else
+ M_=discretionary_policy_initialization(M_,options_);
+ end
+end
+
% Check the perturbation order (k order perturbation based nonlinear filters are not yet implemented for k>1).
if options_.order>2 && options_.particle.pruning
error('Higher order nonlinear filters are not compatible with pruning option.')
diff --git a/matlab/dynare_resolve.m b/matlab/dynare_resolve.m
index 8d5f1ea5c54cb906d9159e8d22742266404a2ae2..6e4b5b21728b7ef30b25f92de0f7a59cde8e43b0 100644
--- a/matlab/dynare_resolve.m
+++ b/matlab/dynare_resolve.m
@@ -66,11 +66,7 @@ function [A,B,ys,info,Model,DynareOptions,DynareResults] = dynare_resolve(Model,
% You should have received a copy of the GNU General Public License
% along with Dynare. If not, see <http://www.gnu.org/licenses/>.
-if DynareOptions.discretionary_policy
- [dr,info,Model,DynareOptions,DynareResults] = discretionary_policy_1(DynareOptions.instruments,Model,DynareOptions,DynareResults);
-else
- [dr,info,Model,DynareOptions,DynareResults] = resol(0,Model,DynareOptions,DynareResults);
-end
+[dr,info,Model,DynareOptions,DynareResults] =compute_decision_rules(Model,DynareOptions,DynareResults);
if info(1) > 0
A = [];
diff --git a/matlab/get_error_message.m b/matlab/get_error_message.m
index 12facad132038c93eee6e19d68791b553bcd0b3a..4380f3a9088a656fd6ac441db03fe663f75eaa40 100644
--- a/matlab/get_error_message.m
+++ b/matlab/get_error_message.m
@@ -121,6 +121,12 @@ if ~noprint
message = 'Discretionary policy: some eigenvalues greater than options_.qz_criterium. Model potentially unstable.';
case 63
message = 'Discretionary policy: NaN elements are present in the solution. Procedure failed.';
+ case 64
+ message = 'discretionary_policy: the derivatives of the objective function contain NaN.';
+ case 65
+ message = 'discretionary_policy: the model must be written in deviation form and not have constant terms.';
+ case 66
+ message = 'discretionary_policy: the objective function must have zero first order derivatives.';
case 71
message = 'Calibrated covariance of the structural errors implies correlation larger than +-1.';
case 72
diff --git a/matlab/global_initialization.m b/matlab/global_initialization.m
index 93c1e8ad6bb38716744f88a0086cec22a130be15..1d9e7f662196aa3283d477736bee69ae8874ba6b 100644
--- a/matlab/global_initialization.m
+++ b/matlab/global_initialization.m
@@ -117,6 +117,7 @@ M_.osr.param_bounds=[];
M_.osr.variable_weights=[];
M_.osr.variable_indices =[];
+M_.instr_id=[];
% Set default options_ in function below; this change was made for the GUI
options_ = default_option_values(M_);
diff --git a/matlab/prior_posterior_statistics_core.m b/matlab/prior_posterior_statistics_core.m
index d1677b4d6cc1137fdeaffcd96a0cd84573eda05b..5d74f2baa26a0151e44a306e2f0984c980c00f2f 100644
--- a/matlab/prior_posterior_statistics_core.m
+++ b/matlab/prior_posterior_statistics_core.m
@@ -203,11 +203,7 @@ for b=fpar:B
M_ = set_all_parameters(deep,estim_params_,M_);
if run_smoother
- if options_.discretionary_policy
- [dr,info,M_,options_,oo_] = discretionary_policy_1(options_.instruments,M_,options_,oo_);
- else
- [dr,info,M_,options_,oo_] = resol(0,M_,options_,oo_);
- end
+ [dr,info,M_,options_,oo_] =compute_decision_rules(M_,options_,oo_);
[alphahat,etahat,epsilonhat,alphatilde,SteadyState,trend_coeff,aK,~,~,P,~,~,trend_addition,state_uncertainty,M_,oo_,options_,bayestopt_] = ...
DsgeSmoother(deep,gend,Y,data_index,missing_value,M_,oo_,options_,bayestopt_,estim_params_);
diff --git a/matlab/selec_posterior_draws.m b/matlab/selec_posterior_draws.m
index 57134bdee8418a603ed9a018392db0ed89c4944b..11d9a4dad16e6388f81134ba135670f8e91839ce 100644
--- a/matlab/selec_posterior_draws.m
+++ b/matlab/selec_posterior_draws.m
@@ -115,11 +115,7 @@ if info
pdraws(i,1) = {x2(SampleAddress(i,4),:)};
if info-1
set_parameters(pdraws{i,1});
- if options_.discretionary_policy
- [dr,info,M_,options_,oo_] = discretionary_policy_1(options_.instruments,M_,options_,oo_);
- else
- [dr,info,M_,options_,oo_] = resol(0,M_,options_,oo_);
- end
+ [dr,info,M_,options_,oo_] =compute_decision_rules(M_,options_,oo_);
pdraws(i,2) = { dr };
end
old_mhfile = mhfile;