@@ -112,7 +112,7 @@ Here is a proposed addition to the Dynare auxiliary variables wiki, describing *
...
@@ -112,7 +112,7 @@ Here is a proposed addition to the Dynare auxiliary variables wiki, describing *
## Type 15: Heterogeneous model multipliers (since Dynare 7)
## Type 15: Heterogeneous model multipliers (since Dynare 7)
This kind of auxiliary variable has `M_.aux_vars(i).type = 15` and is introduced to represent Lagrange multipliers associated with complementarity constraints in heterogeneous-agent models. These arise when an agent's decision is constrained by inequality bounds, such as borrowing constraints, portfolio limits, or non-negativity requirements.
Considerins heterogeneity dimension `j`, This kind of auxiliary variable has `M_.heterogeneity(j).aux_vars(i).type = 15` and is introduced to represent Lagrange multipliers associated with complementarity constraints in heterogeneous-agent models. These arise when an agent's decision is constrained by inequality bounds, such as borrowing constraints, portfolio limits, or non-negativity requirements.
When a policy variable `x` is subject to bounds `x ∈ [x_min, x_max]`, Dynare unfolds the complementarity condition into a pair of auxiliary variables and equations:
When a policy variable `x` is subject to bounds `x ∈ [x_min, x_max]`, Dynare unfolds the complementarity condition into a pair of auxiliary variables and equations: