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Filter out cases where invalid starting value leads to NaN or Inf in Jac...

Johannes Pfeifer requested to merge JohannesPfeifer:dynare_solve into master

...obian.

Replaces cryptic meassage "Some element of Newton direction isn't finite. Jacobian maybe singular or there is a problem with initial values" with more expressive message. Sample mod file from the forum:

%-------------------------------------------------------------------------------------------
                   % The macroeconomic Effect of Non-Zero Trend Inflation
%-------------------------------------------------------------------------------------------
% endogenous variables 

var 
c                          %consumption
b                          %money demand shock
m                          %nominal balances
lambda                     %lagrange multiplier
r                          %nominal interest rate
pi                         %inflation rate
h                          %hours worked
i                          %real investment
k                          %capital stock
y                          %output
ys                         %aggregate output 
s                          %aggregate prices indicator
q                          % real rental rate of capital
w                          % real wages
psi                        % real marginal cost
a                          %technology level
pstar                      %optimal price
x                          %price evolution indicator 1
z                          %price evolution price indicator 2;

%exogenous shocks 
varexo er, ea, eb;

%model parameters
parameters beta, sigma, eta, alpha, theta, delta, phi, d, rhor, rhopi, rhoy, rhob, sigma_eb, rhoa, sigma_ea, sigma_er, ybar, pibar, Rs, As, Bs;  

%---------------------calibration-------------------------------------------------------------------------------------
beta=0.99;                      %discount factor
sigma=0.25;                     %elasticity of substitution between consumption and real balances
eta=1.5;                        % 
alpha=0.34;                     %elasticity of substitution between capital and hours worked
theta=0.01;                     %elasticity of substitution between types of differentiated intermediate goods
delta=0.025;                    %depreciation rate of capital
phi=10.0;                       %parameter of adjustment costs of investment
d=0.75;                         %calvo parameter
rhor=0.80;                      %the Taylor rule interest rate parameter
rhopi=1.50;                        %the Taylor rule inflation rate parameter
rhoy=0.20;                      %the Taylor rule output parameter
rhob=0.80;                      %money demand shock parameter
sigma_eb=0.01;                  %std.dev of money demand stochastic shock 
rhoa=0.80;                      %technologic shock parameter
sigma_ea=0.01;                    %std.dev of the technologic shock
sigma_er=0.01;                    %std.dev of the monetary policy shock
ybar=0.7877;                      %steady state output
pibar=(1.0)^(1/4);              %steady state price
Rs=pibar/beta;
As=1;
Bs=1;

model;
%---------FOC Households--------------------------------------------------------------------------------------
c^(-1/sigma)/(c^((sigma-1)/sigma)+(b^(1/sigma))*(m^((sigma-1)/sigma)))=lambda; %eq1
b^(1/sigma)*m^(-1/sigma)/(c^((sigma-1)/sigma)+(b^(1/sigma))*(m^((sigma-1)/sigma)))=lambda*(1-(1/r)); %eq2
lambda=beta*lambda(+1)*(r/(pi(+1))); %eq3
eta/(1-h)=lambda*w; %eq4
lambda*(1 + phi*((i/k(-1))-delta))=beta*lambda(+1)*(1+q(+1)-delta+(phi*((i(+1)/k)-delta)+(phi/2)*((i(+1)/k)-delta)^2)); %eq5
%-----------law of the accumilation of capital------------------------------------------------------------------
k=(1-delta)*k(-1)+i; %eq6
%-----------FOC firms-------------------------------------------------------------------------------------
ys=y*s; %eq7
ys=a*(k(-1)^(1-alpha))*(h^alpha); %eq8
q=(1-alpha)*psi*(ys/k(-1));     %eq9
w=alpha*psi*(ys/h);             %eq10
y=c+k+(1-delta)*k(-1)+((phi/2)*(((i/k(-1))-delta)^2)*(k(-1)));   %eq11
%-------------Taylor rule--------------------------------------------------------------
r=(Rs^(1-rhor))*(r(-1)^(rhor))*((pi/pibar)^(rhopi))*((y/ybar)^(rhoy))*exp(er); %eq12
%-----------------Shock---------------------------------------------------------------------------------
b=(b(-1)^(rhob))*(b(-2)^(rhob))*(Bs^(1-rhob))*exp(eb);  %eq13
a=(As^(1-rhoa))*(a(-1)^(rhoa))*(a(+2)^(rhoa))*exp(ea);  %eq14
%--------------------calvo pricing--------------------------------------------------------------------------
s=(1-d)*(pstar^(-theta))+d*(pi^(theta))*s(-1);       %eq15
1=d*(pi^(theta-1))+(1-d)*(pstar^(1-theta));       %eq16
x=y*psi*(pstar(-1)^(-theta-1))+d*beta*(lambda(+1)/lambda)*((pstar/pstar(+1))^(-theta-1))*(pi(+1)^(theta))*x(+1); %eq17
z=y*(pstar(-1)^(-theta))+d*beta*(lambda(+1)/lambda)*((pstar/pstar(+1))^(-theta))*(pi(+1)^(theta-1))*z(+1);    %eq18
x=((theta-1)/theta)*z;   %eq19
end;

initval;
y=0.78;
c=0.64;
m=0.50;
i=0.14;
h=0.33;
w=1.45;
pi=1;
psi=0.87;
r=1;
a=0;
b=0;
s=1;
k=6.35;
q=0.035;
pstar=1.5;
end;

resid(1);
steady;
check;

shocks; 
var er; stderr 0.4;
end;
stoch_simul(irf=20, AR=6) y c h i m w pi r;

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