diff --git a/doc/manual/source/the-model-file.rst b/doc/manual/source/the-model-file.rst
index 3665099488971110612492a35980ba82e619474a..e0dba00862cd7a917b9d563605f788425b08bad5 100644
--- a/doc/manual/source/the-model-file.rst
+++ b/doc/manual/source/the-model-file.rst
@@ -4174,16 +4174,7 @@ and ``endval`` blocks which are given a special ``learnt_in`` option.
*Options*
This command accepts all the options of :comm:`perfect_foresight_solver`,
- with the same semantics, plus the following ones:
-
- .. option:: terminal_steady_state_as_guess_value
-
- By default, the initial guess for the computation of the path of
- endogenous is the initial steady state (when using the information set
- from period 1) or the previously simulated path (when using an
- information set that is different from that of period 1). When this
- option is given, the initial guess is instead the terminal steady
- state.
+ with the same semantics, plus the following one:
.. option:: constant_simulation_length
diff --git a/matlab/default_option_values.m b/matlab/default_option_values.m
index 2d3f6995df4379b2b7c65300200d0966f033ce27..52bd5b6feabaa16b42e4b1c8c85b26c6abb7810d 100644
--- a/matlab/default_option_values.m
+++ b/matlab/default_option_values.m
@@ -329,7 +329,6 @@ options_.no_homotopy = false;
options_.homotopy_alt_starting_point = false;
% Perfect foresight with expectation errors
-options_.pfwee.terminal_steady_state_as_guess_value = false;
options_.pfwee.constant_simulation_length = false;
% Solution
diff --git a/matlab/perfect-foresight-models/perfect_foresight_with_expectation_errors_setup.m b/matlab/perfect-foresight-models/perfect_foresight_with_expectation_errors_setup.m
index a50fa6c017206f05970084527885631896eea79c..2a89e13efe5846e7c63bfcdc40e0aa8929cd2d6a 100644
--- a/matlab/perfect-foresight-models/perfect_foresight_with_expectation_errors_setup.m
+++ b/matlab/perfect-foresight-models/perfect_foresight_with_expectation_errors_setup.m
@@ -142,12 +142,12 @@ end
% Build initial paths for endos and exos (only initial conditions are set, the rest is NaN)
if isempty(ys0_)
- oo_.endo_simul = [repmat(oo_.steady_state, 1, M_.maximum_lag) NaN(M_.endo_nbr, periods+M_.maximum_lead)];
+ oo_.endo_simul = repmat(oo_.steady_state, 1, M_.maximum_lag+periods+M_.maximum_lead);
else
- oo_.endo_simul = [repmat(ys0_, 1, M_.maximum_lag) NaN(M_.endo_nbr, periods+M_.maximum_lead)];
+ oo_.endo_simul = [repmat(ys0_, 1, M_.maximum_lag) repmat(oo_.steady_state, 1, periods+M_.maximum_lead)];
end
if isempty(ex0_)
- oo_.exo_simul = [repmat(oo_.exo_steady_state',M_.maximum_lag,1); NaN(periods+M_.maximum_lead,M_.exo_nbr)];
+ oo_.exo_simul = repmat(oo_.exo_steady_state', M_.maximum_lag+periods+M_.maximum_lead, 1);
else
- oo_.exo_simul = [repmat(ex0_',M_.maximum_lag,1); NaN(periods+M_.maximum_lead,M_.exo_nbr)];
+ oo_.exo_simul = [repmat(ex0_', M_.maximum_lag, 1); repmat(oo_.exo_steady_state', periods+M_.maximum_lead, 1)];
end
diff --git a/matlab/perfect-foresight-models/perfect_foresight_with_expectation_errors_solver.m b/matlab/perfect-foresight-models/perfect_foresight_with_expectation_errors_solver.m
index 0e9cd3f26c44c8a3364becdc3cf84c32f1cc67a2..77b882b2e1c2789ad669ce543bf4a5c318609a06 100644
--- a/matlab/perfect-foresight-models/perfect_foresight_with_expectation_errors_solver.m
+++ b/matlab/perfect-foresight-models/perfect_foresight_with_expectation_errors_solver.m
@@ -55,15 +55,9 @@ while info_period <= periods
else
sim_length = periods - info_period + 1;
end
- if options_.pfwee.terminal_steady_state_as_guess_value
- % Overwrite guess value with terminal steady state
- oo_.endo_simul(:, M_.maximum_lag+(1:sim_length)) = repmat(oo_.steady_state, 1, sim_length);
- elseif info_period == 1
- % Use initial steady state as guess value for first simulation if not using terminal steady state
- oo_.endo_simul(:, M_.maximum_lag+(1:periods)) = repmat(initial_steady_state, 1, periods);
- elseif options_.pfwee.constant_simulation_length && increment > M_.maximum_lead
- % Use initial steady state as guess value for simulation periods that don’t yet have an initial guess (i.e. are NaNs)
- oo_.endo_simul(:, M_.maximum_lag+periods-(0:increment-M_.maximum_lead-1)) = repmat(initial_steady_state, 1, increment-M_.maximum_lead);
+ if options_.pfwee.constant_simulation_length && increment > M_.maximum_lead
+ % Use terminal steady state as guess value for simulation periods that don’t yet have an initial guess (i.e. are NaNs at this point)
+ oo_.endo_simul(:, M_.maximum_lag+periods-(0:increment-M_.maximum_lead-1)) = repmat(oo_.steady_state, 1, increment-M_.maximum_lead);
end
oo_.endo_simul(:, end-M_.maximum_lead+1:end) = repmat(oo_.steady_state, 1, M_.maximum_lead);
oo_.exo_simul = exo_simul(info_period:end, :);
diff --git a/preprocessor b/preprocessor
index 0de27e8dab9c4190be17ea8642cf301844c8043a..a1b8602760e77895ee065de4dadb0d532c4e926e 160000
--- a/preprocessor
+++ b/preprocessor
@@ -1 +1 @@
-Subproject commit 0de27e8dab9c4190be17ea8642cf301844c8043a
+Subproject commit a1b8602760e77895ee065de4dadb0d532c4e926e
diff --git a/tests/deterministic_simulations/pfwee.mod b/tests/deterministic_simulations/pfwee.mod
index dcca363109d598c76eae8519b212782f35d72f50..a42300cbbc53ab6dc985829df297730953e338be 100644
--- a/tests/deterministic_simulations/pfwee.mod
+++ b/tests/deterministic_simulations/pfwee.mod
@@ -31,11 +31,7 @@ perfect_foresight_with_expectation_errors_setup(periods = 7, datafile = 'pfwee.c
// First simulation with default options
perfect_foresight_with_expectation_errors_solver;
-pfwee1 = oo_.endo_simul;
-
-// Second simulation with alternative guess values
-perfect_foresight_with_expectation_errors_solver(terminal_steady_state_as_guess_value);
-pfwee2 = oo_.endo_simul;
+pfwee_simul = oo_.endo_simul;
// Now compute the solution by hand to verify the results
@@ -93,12 +89,6 @@ oo_.exo_simul = [ saved_exo; oo_.exo_simul ];
% We should have strict equality with first pfwee simulation, because algorithm
% and guess values are exactly the same.
-if any(any(pfwee1-oo_.endo_simul ~= 0))
+if any(any(pfwee_simul-oo_.endo_simul ~= 0))
error('Error in perfect_foresight_with_expectation_errors')
end
-
-% For the 2nd simulation, since the guess values are different, there are some
-% numerical differences
-if max(max(abs(pfwee2-oo_.endo_simul))) > 10*options_.dynatol.f
- error('Error in perfect_foresight_with_expectation_errors + terminal_steady_state_as_guess_value')
-end
diff --git a/tests/deterministic_simulations/pfwee_constant_sim_length.mod b/tests/deterministic_simulations/pfwee_constant_sim_length.mod
index d8a9e0bdeb86a3d343d64e522947d7a4c9dd6be5..82a5199452bd9ad9b247aca182089ca47f9a4954 100644
--- a/tests/deterministic_simulations/pfwee_constant_sim_length.mod
+++ b/tests/deterministic_simulations/pfwee_constant_sim_length.mod
@@ -29,12 +29,7 @@ check;
// First simulation with default options
perfect_foresight_with_expectation_errors_setup(periods = 7, datafile = 'pfwee.csv');
perfect_foresight_with_expectation_errors_solver(constant_simulation_length);
-pfwee1 = oo_.endo_simul;
-
-// Second simulation with alternative guess values
-perfect_foresight_with_expectation_errors_setup(periods = 7, datafile = 'pfwee.csv');
-perfect_foresight_with_expectation_errors_solver(terminal_steady_state_as_guess_value, constant_simulation_length);
-pfwee2 = oo_.endo_simul;
+pfwee_simul = oo_.endo_simul;
// Now compute the solution by hand to verify the results
@@ -80,8 +75,7 @@ oo_.exo_simul(8,1) = 1.1;
oo_.exo_steady_state = 1.1;
oo_.exo_simul(9:14, 1) = repmat(oo_.exo_steady_state', 6, 1);
oo_.steady_state = evaluate_steady_state(oo_.steady_state, oo_.exo_steady_state, M_, options_, true);
-oo_.endo_simul(:, 12:13) = repmat(initial_steady_state, 1, 2);
-oo_.endo_simul(:, 14) = oo_.steady_state;
+oo_.endo_simul(:, 12:14) = repmat(oo_.steady_state, 1, 3);
saved_endo = oo_.endo_simul(:, 1:5);
saved_exo = oo_.exo_simul(1:5, :);
oo_.endo_simul = oo_.endo_simul(:, 6:end);
@@ -92,12 +86,6 @@ oo_.exo_simul = [ saved_exo; oo_.exo_simul ];
% We should have strict equality with first pfwee simulation, because algorithm
% and guess values are exactly the same.
-if any(any(pfwee1-oo_.endo_simul ~= 0))
+if any(any(pfwee_simul-oo_.endo_simul ~= 0))
error('Error in perfect_foresight_with_expectation_errors')
end
-
-% For the 2nd simulation, since the guess values are different, there are some
-% numerical differences
-if max(max(abs(pfwee2-oo_.endo_simul))) > 40*options_.dynatol.f
- error('Error in perfect_foresight_with_expectation_errors + terminal_steady_state_as_guess_value')
-end
diff --git a/tests/deterministic_simulations/pfwee_learnt_in.mod b/tests/deterministic_simulations/pfwee_learnt_in.mod
index 4d3dd438045d2125128ab22b2cc6a90a37354c92..8c2a0dc148b94073c73e78227809d7699b9a0706 100644
--- a/tests/deterministic_simulations/pfwee_learnt_in.mod
+++ b/tests/deterministic_simulations/pfwee_learnt_in.mod
@@ -74,11 +74,7 @@ perfect_foresight_with_expectation_errors_setup(periods = 7);
// First simulation with default options
perfect_foresight_with_expectation_errors_solver;
-pfwee1 = oo_.endo_simul;
-
-// Second simulation with alternative guess values
-perfect_foresight_with_expectation_errors_solver(terminal_steady_state_as_guess_value);
-pfwee2 = oo_.endo_simul;
+pfwee_simul = oo_.endo_simul;
// Now compute the solution by hand to verify the results
@@ -137,12 +133,6 @@ oo_.exo_simul = [ saved_exo; oo_.exo_simul ];
% We should have strict equality with first pfwee simulation, because algorithm
% and guess values are exactly the same.
-if any(any(pfwee1-oo_.endo_simul ~= 0))
+if any(any(pfwee_simul-oo_.endo_simul ~= 0))
error('Error in perfect_foresight_with_expectation_errors')
end
-
-% For the 2nd simulation, since the guess values are different, there are some
-% numerical differences
-if max(max(abs(pfwee2-oo_.endo_simul))) > 10*options_.dynatol.f
- error('Error in perfect_foresight_with_expectation_errors + terminal_steady_state_as_guess_value')
-end