From 83ea804fcc3a5fc3b46a4a18e3b7e76f86178c68 Mon Sep 17 00:00:00 2001
From: Johannes Pfeifer <jpfeifer@gmx.de>
Date: Fri, 20 Aug 2021 13:31:31 +0200
Subject: [PATCH] estimation: remove invalid check for presence of constant
a zero steady state is a local property depending on the parameter vector; if initial evaluation to true, the constant was ignored
---
matlab/dynare_estimation_init.m | 2 +-
matlab/method_of_moments/method_of_moments.m | 2 +-
2 files changed, 2 insertions(+), 2 deletions(-)
diff --git a/matlab/dynare_estimation_init.m b/matlab/dynare_estimation_init.m
index c4e3f70dff..c341d7a569 100644
--- a/matlab/dynare_estimation_init.m
+++ b/matlab/dynare_estimation_init.m
@@ -621,7 +621,7 @@ end
% If the steady state of the observed variables is non zero, set noconstant equal 0 ()
if (~options_.loglinear && all(abs(oo_.steady_state(bayestopt_.mfys))<1e-9)) || (options_.loglinear && all(abs(log(oo_.steady_state(bayestopt_.mfys)))<1e-9))
- options_.noconstant = 1;
+ options_.noconstant = 0; %identifying the constant based on just the initial parameter value is not feasible
else
options_.noconstant = 0;
% If the data are prefiltered then there must not be constants in the
diff --git a/matlab/method_of_moments/method_of_moments.m b/matlab/method_of_moments/method_of_moments.m
index 30d47f7fe5..4d757afb7f 100644
--- a/matlab/method_of_moments/method_of_moments.m
+++ b/matlab/method_of_moments/method_of_moments.m
@@ -707,7 +707,7 @@ test_for_deep_parameters_calibration(M_);
% If steady state of observed variables is non zero, set noconstant equal 0
if all(abs(oo_.steady_state(oo_.dr.order_var(oo_.dr.obs_var)))<1e-9)
- options_mom_.noconstant = 1;
+ options_mom_.noconstant = 0; %identifying the constant based on just the initial parameter value is not feasible
else
options_mom_.noconstant = 0;
end
--
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