diff --git a/matlab/dr1.m b/matlab/dr1.m
index 82c22690c7be928dbdaf72b02578787d689fad4a..0be5b97c697db7d2a100617b473b0caf329185d6 100644
--- a/matlab/dr1.m
+++ b/matlab/dr1.m
@@ -83,11 +83,49 @@ function [dr,info,M_,options_,oo_] = dr1(dr,task,M_,options_,oo_)
M_.maximum_lag = orig_model.maximum_lag;
M_.maximum_endo_lag = orig_model.maximum_endo_lag;
end
- old_solve_algo = options_.solve_algo;
- % options_.solve_algo = 1;
- oo_.steady_state = dynare_solve('dyn_ramsey_static_',oo_.steady_state,0,M_,options_,oo_,it_);
- options_.solve_algo = old_solve_algo;
- [junk,junk,multbar] = dyn_ramsey_static_(oo_.steady_state,M_,options_,oo_,it_);
+
+ if options_.steadystate_flag
+ k_inst = [];
+ instruments = options_.instruments;
+ for i = 1:size(instruments,1)
+ k_inst = [k_inst; strmatch(options_.instruments(i,:), ...
+ M_.endo_names,'exact')];
+ end
+ ys = oo_.steady_state;
+ inst_val = dynare_solve('dyn_ramsey_static_', ...
+ oo_.steady_state(k_inst),0, ...
+ M_,options_,oo_,it_);
+ ys(k_inst) = inst_val;
+ [x,check] = feval([M_.fname '_steadystate'],...
+ ys,[oo_.exo_steady_state; ...
+ oo_.exo_det_steady_state]);
+ if size(x,1) < M_.endo_nbr
+ if length(M_.aux_vars) > 0
+ x = add_auxiliary_variables_to_steadystate(x,M_.aux_vars,...
+ M_.fname,...
+ oo_.exo_steady_state,...
+ oo_.exo_det_steady_state,...
+ M_.params);
+ else
+ error([M_.fname '_steadystate.m doesn''t match the model']);
+ end
+ end
+ oo_.steady_state = x;
+ [junk,junk,multbar] = dyn_ramsey_static_(oo_.steady_state(k_inst),M_,options_,oo_,it_);
+ else
+ oo_.steady_state = dynare_solve('dyn_ramsey_static_', ...
+ oo_.steady_state,0,M_,options_,oo_,it_);
+ [junk,junk,multbar] = dyn_ramsey_static_(oo_.steady_state,M_,options_,oo_,it_);
+ end
+ check1 = max(abs(feval([M_.fname '_static'],...
+ oo_.steady_state,...
+ [oo_.exo_steady_state; ...
+ oo_.exo_det_steady_state], M_.params))) > options_.dynatol ;
+ if check1
+ error(['The steadystate values returned by ' M_.fname ...
+ '_steadystate.m don''t solve the static model!' ])
+ end
+
[jacobia_,M_] = dyn_ramsey_dynamic_(oo_.steady_state,multbar,M_,options_,oo_,it_);
klen = M_.maximum_lag + M_.maximum_lead + 1;
dr.ys = [oo_.steady_state;zeros(M_.exo_nbr,1);multbar];
diff --git a/matlab/dyn_ramsey_static_.m b/matlab/dyn_ramsey_static_.m
index 9362eeaec1dc8473838259f5a85757794aab9580..0bff491eaee42361fea21d2835e6d88f6d291591 100644
--- a/matlab/dyn_ramsey_static_.m
+++ b/matlab/dyn_ramsey_static_.m
@@ -49,14 +49,39 @@ function [resids, rJ,mult] = dyn_ramsey_static_(x,M_,options_,oo_,it_)
% lead_lag incidence matrix for endogenous variables
i_lag = M_.lead_lag_incidence;
+ if options_.steadystate_flag
+ k_inst = [];
+ instruments = options_.instruments;
+ for i = 1:size(instruments,1)
+ k_inst = [k_inst; strmatch(options_.instruments(i,:), ...
+ M_.endo_names,'exact')];
+ end
+ oo_.steady_state(k_inst) = x;
+ [x,check] = feval([M_.fname '_steadystate'],...
+ oo_.steady_state,...
+ [oo_.exo_steady_state; ...
+ oo_.exo_det_steady_state]);
+ if size(x,1) < M_.endo_nbr
+ if length(M_.aux_vars) > 0
+ x = add_auxiliary_variables_to_steadystate(x,M_.aux_vars,...
+ M_.fname,...
+ oo_.exo_steady_state,...
+ oo_.exo_det_steady_state,...
+ M_.params);
+ else
+ error([M_.fname '_steadystate.m doesn''t match the model']);
+ end
+ end
+ end
+
% value and Jacobian of objective function
ex = zeros(1,M_.exo_nbr);
[U,Uy,Uyy] = feval([fname '_objective_static'],x(i_endo),ex, M_.params);
Uy = Uy';
Uyy = reshape(Uyy,endo_nbr,endo_nbr);
- % value and Jacobian of dynamic function
y = repmat(x(i_endo),1,max_lag+max_lead+1);
+ % value and Jacobian of dynamic function
k = find(i_lag');
it_ = 1;
% [f,fJ,fH] = feval([fname '_dynamic'],y(k),ex);
@@ -83,7 +108,11 @@ function [resids, rJ,mult] = dyn_ramsey_static_(x,M_,options_,oo_,it_)
resids1 = Uy+A*mult;
% resids = [f; sqrt(resids1'*resids1/endo_nbr)];
[q,r,e] = qr([A Uy]');
- resids = [f; r(end,(endo_nbr-inst_nbr+1:end))'];
+ if options_.steadystate_flag
+ resids = [r(end,(endo_nbr-inst_nbr+1:end))'];
+ else
+ resids = [f; r(end,(endo_nbr-inst_nbr+1:end))'];
+ end
rJ = [];
return;
diff --git a/preprocessor/DynareBison.yy b/preprocessor/DynareBison.yy
index 4e426691f61f021cdf23b18abe5fd934ef83ce33..912cd898c06a2c43370e4bfb955f4644643e7a87 100644
--- a/preprocessor/DynareBison.yy
+++ b/preprocessor/DynareBison.yy
@@ -97,7 +97,7 @@ class ParsingDriver;
%token END ENDVAL EQUAL ESTIMATION ESTIMATED_PARAMS ESTIMATED_PARAMS_BOUNDS ESTIMATED_PARAMS_INIT
%token FILENAME FILTER_STEP_AHEAD FILTERED_VARS FIRST_OBS
%token <string_val> FLOAT_NUMBER
-%token FORECAST K_ORDER_SOLVER
+%token FORECAST K_ORDER_SOLVER INSTRUMENTS
%token GAMMA_PDF GRAPH CONDITIONAL_VARIANCE_DECOMPOSITION
%token HISTVAL HOMOTOPY_SETUP HOMOTOPY_MODE HOMOTOPY_STEPS HP_FILTER HP_NGRID
%token IDENTIFICATION INF_CONSTANT INITVAL INITVAL_FILE
@@ -1293,6 +1293,7 @@ ramsey_policy_options_list : ramsey_policy_options_list COMMA ramsey_policy_opti
ramsey_policy_options : stoch_simul_options
| o_planner_discount
+ | o_instruments
;
write_latex_dynamic_model : WRITE_LATEX_DYNAMIC_MODEL ';'
@@ -1875,6 +1876,7 @@ o_equations : EQUATIONS EQUAL vec_int
| EQUATIONS EQUAL INT_NUMBER
{ driver.option_num("ms.equations",$3); }
;
+o_instruments : INSTRUMENTS EQUAL '(' symbol_list ')' {driver.option_symbol_list("instruments"); };
range : symbol ':' symbol
{
diff --git a/preprocessor/DynareFlex.ll b/preprocessor/DynareFlex.ll
index d22450726505e68b4c4ec0d6e2db2f14498d3c3f..ea329b9f5a8ca1d99ce56feaa14bd9cd5d397836 100644
--- a/preprocessor/DynareFlex.ll
+++ b/preprocessor/DynareFlex.ll
@@ -315,7 +315,7 @@ int sigma_e = 0;
<DYNARE_STATEMENT>draws_nbr_mean_var_estimate {return token::DRAWS_NBR_MEAN_VAR_ESTIMATE;}
<DYNARE_STATEMENT>draws_nbr_modified_harmonic_mean {return token::DRAWS_NBR_MODIFIED_HARMONIC_MEAN;}
<DYNARE_STATEMENT>dirichlet_scale {return token::DIRICHLET_SCALE;}
-
+<DYNARE_STATEMENT>instruments {return token::INSTRUMENTS;}
/* These four (var, varexo, varexo_det, parameters) are for change_type */
<DYNARE_STATEMENT>var { return token::VAR; }