diff --git a/matlab/occbin/evaluate_model.m b/matlab/occbin/evaluate_model.m
new file mode 100644
index 0000000000000000000000000000000000000000..f01d58a08df113be9ee59b9a1311ca612e7ed458
--- /dev/null
+++ b/matlab/occbin/evaluate_model.m
@@ -0,0 +1,19 @@
+function [r,g1,g2,g3] = evaluate_model(z,x,M,ss)
+
+ll = M.lead_lag_incidence';
+y = z(find(ll(:)));
+
+switch nargout
+ case 1
+ r = feval([M.fname '_dynamic'],y,x, ...
+ M.params, ss, 1);
+ case 2
+ [r,g1] = feval([M.fname '_dynamic'],y,x, ...
+ M.params, ss, 1);
+ case 3
+ [r,g1,g2] = feval([M.fname '_dynamic'],y,x, ...
+ M.params, ss, 1);
+ case 4
+ [r,g1,g2,g3] = feval([M.fname '_dynamic'],y,x, ...
+ M.params, ss, 1);
+end
\ No newline at end of file
diff --git a/matlab/occbin/get_coef.m b/matlab/occbin/get_coef.m
new file mode 100644
index 0000000000000000000000000000000000000000..f2dbde5a619dce0a95c22c304f09b4ab80258019
--- /dev/null
+++ b/matlab/occbin/get_coef.m
@@ -0,0 +1,26 @@
+function [coef_y,coef_u] = get_coef(jacobian,M)
+
+ll = M.lead_lag_incidence;
+endo_nbr = M.endo_nbr;
+coef_y = zeros(endo_nbr,3*endo_nbr);
+coef_u = zeros(endo_nbr,M.exo_nbr);
+
+if M.maximum_lag > 0
+ [junk,c1,c2] = find(ll(1,:));
+ coef_y(:,c1) = jacobian(:,c2);
+ [junk,c1,c2] = find(ll(2,:));
+ coef_y(:,c1+endo_nbr) = jacobian(:,c2);
+ if M.maximum_lead > 0
+ [junk,c1,c2] = find(ll(3,:));
+ coef_y(:,c1+2*endo_nbr) = jacobian(:,c2);
+ end
+else
+ [junk,c1,c2] = find(ll(1,:));
+ coef_y(:,c1+endo_nbr) = jacobian(:,c2);
+ if M.maximum_lead > 0
+ [junk,c1,c2] = find(ll(2,:));
+ coef_y(:,c1+2*endo_nbr) = jacobian(:,c2);
+ end
+end
+
+coef_u = jacobian(:,max(ll(end,:))+1:end);
\ No newline at end of file
diff --git a/matlab/occbin/get_complementarity_conditions.m b/matlab/occbin/get_complementarity_conditions.m
new file mode 100644
index 0000000000000000000000000000000000000000..cf5a40866c68ec71ca77295ed83dd85b524949b9
--- /dev/null
+++ b/matlab/occbin/get_complementarity_conditions.m
@@ -0,0 +1,72 @@
+function [lb,ub,eq_index] = get_complementarity_conditions(M,ramsey_policy)
+
+% Copyright (C) 2014 Dynare Team
+%
+% This file is part of Dynare.
+%
+% Dynare is free software: you can redistribute it and/or modify
+% it under the terms of the GNU General Public License as published by
+% the Free Software Foundation, either version 3 of the License, or
+% (at your option) any later version.
+%
+% Dynare is distributed in the hope that it will be useful,
+% but WITHOUT ANY WARRANTY; without even the implied warranty of
+% MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the
+% GNU General Public License for more details.
+%
+% You should have received a copy of the GNU General Public License
+% along with Dynare. If not, see <http://www.gnu.org/licenses/>.
+
+ub = inf(M.endo_nbr,1);
+lb = -ub;
+eq_index = (1:M.endo_nbr)';
+if ramsey_policy
+ if isfield(M,'ramsey_model_constraints')
+ rc = M.ramsey_model_constraints;
+ for i = 1:length(rc)
+ switch rc{i}{2}
+ case {'>','>='}
+ lb(rc{i}{1}) = eval(rc{i}{3});
+ case {'<','<='}
+ ub(rc{i}{1}) = eval(rc{i}{3});
+ otherwise
+ error('Wrong operator in get_complementarity_conditions')
+ end
+ eq_index(i) = 1;
+ end
+ end
+end
+
+etags = M.equations_tags;
+for i=1:size(etags,1)
+ if strcmp(etags{i,2},'mcp')
+ str = etags{i,3};
+ kop = strfind(etags{i,3},'<');
+ if ~isempty(kop)
+ k = find(strcmp(strtrim(str(1:kop-1)),cellstr(M.endo_names)));
+ if isempty(k)
+ error(sprintf(['Complementarity condition %s: variable %s is ' ...
+ 'not recognized',etags{i,3},b{1}]))
+ end
+ ub(k) = str2num(str(kop+1:end));
+ eq_index(etags{i,1}) = k;
+ eq_index(k) = etags{i,1};
+ else
+ kop = strfind(etags{i,3},'>');
+ if ~isempty(kop)
+ k = find(strcmp(strtrim(str(1:kop-1)),cellstr(M.endo_names)));
+ if isempty(k)
+ error(sprintf(['Complementarity condition %s: variable %s is ' ...
+ 'not recognized',etags{i},b{1}]))
+ end
+ lb(k) = str2num(str(kop+1:end));
+ eq_index(etags{i,1}) = k;
+ eq_index(k) = etags{i,1};
+ else
+ error(sprintf(['Complementarity condition %s can''t be ' ...
+ 'parsed'],etags{i,3}))
+ end
+ end
+ end
+end
+
diff --git a/matlab/occbin/get_occbin_complementarity_conditions.m b/matlab/occbin/get_occbin_complementarity_conditions.m
new file mode 100644
index 0000000000000000000000000000000000000000..29c8655872393b95058ad4830dfb2ef302651bd9
--- /dev/null
+++ b/matlab/occbin/get_occbin_complementarity_conditions.m
@@ -0,0 +1,75 @@
+function [ivar,ieq,lb,ub] = get_occbin_complementarity_conditions(M,ramsey_policy)
+
+% Copyright (C) 2015 Dynare Team
+%
+% This file is part of Dynare.
+%
+% Dynare is free software: you can redistribute it and/or modify
+% it under the terms of the GNU General Public License as published by
+% the Free Software Foundation, either version 3 of the License, or
+% (at your option) any later version.
+%
+% Dynare is distributed in the hope that it will be useful,
+% but WITHOUT ANY WARRANTY; without even the implied warranty of
+% MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the
+% GNU General Public License for more details.
+%
+% You should have received a copy of the GNU General Public License
+% along with Dynare. If not, see <http://www.gnu.org/licenses/>.
+
+nrow = 1;
+if ramsey_policy
+ if isfield(M,'ramsey_model_constraints')
+ rc = M.ramsey_model_constraints;
+ for i = 1:length(rc)
+ switch rc{i}{2}
+ case {'>','>='}
+ ivar(nrow) = rc{i}{1};
+ ieq(nrow) = rc{i}{1};
+ lb(nrow) = eval(rc{i}{3});
+ case {'<','<='}
+ ivar(nrow) = rc{i}{1};
+ ieq(nrow) = rc{i}{1};
+ ub(nrow) = eval(rc{i}{3});
+ otherwise
+ error('Wrong operator in get_complementarity_conditions')
+ end
+ nrow = nrow + 1;
+ end
+ end
+end
+
+etags = M.equations_tags;
+for i=1:size(etags,1)
+ if strcmp(etags{i,2},'mcp')
+ str = etags{i,3};
+ kop = strfind(etags{i,3},'<');
+ if ~isempty(kop)
+ k = find(strcmp(strtrim(str(1:kop-1)),cellstr(M.endo_names)));
+ if isempty(k)
+ error(sprintf(['Complementarity condition %s: variable %s is ' ...
+ 'not recognized',etags{i,3},b{1}]))
+ end
+ ivar(nrow) = k;
+ ieq(nrow) = etags{i,1};
+ ub(nrow) = eval(str(kop+1:end));
+ else
+ kop = strfind(etags{i,3},'>');
+ if ~isempty(kop)
+ k = find(strcmp(strtrim(str(1:kop-1)),cellstr(M.endo_names)));
+ if isempty(k)
+ error(sprintf(['Complementarity condition %s: variable %s is ' ...
+ 'not recognized',etags{i},b{1}]))
+ end
+ ivar(nrow) = k;
+ ieq(nrow) = etags{i,1};
+ lb(k) = eval(str(kop+1:end));
+ else
+ error(sprintf(['Complementarity condition %s can''t be ' ...
+ 'parsed'],etags{i,3}))
+ end
+ end
+ nrow = nrow + 1;
+ end
+end
+
diff --git a/matlab/occbin/get_occbin_constraints.m b/matlab/occbin/get_occbin_constraints.m
new file mode 100644
index 0000000000000000000000000000000000000000..6723f45423b13e99879900f0ec61413a9ccb9387
--- /dev/null
+++ b/matlab/occbin/get_occbin_constraints.m
@@ -0,0 +1,88 @@
+function [i_base,i_alt,c_base,c_alt] = get_occbin_constraints(M,steady_state,ramsey_policy)
+
+% Copyright (C) 2015 Dynare Team
+%
+% This file is part of Dynare.
+%
+% Dynare is free software: you can redistribute it and/or modify
+% it under the terms of the GNU General Public License as published by
+% the Free Software Foundation, either version 3 of the License, or
+% (at your option) any later version.
+%
+% Dynare is distributed in the hope that it will be useful,
+% but WITHOUT ANY WARRANTY; without even the implied warranty of
+% MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the
+% GNU General Public License for more details.
+%
+% You should have received a copy of the GNU General Public License
+% along with Dynare. If not, see <http://www.gnu.org/licenses/>.
+
+nrow = 1;
+if ramsey_policy
+ if isfield(M,'ramsey_model_constraints')
+ rc = M.ramsey_model_constraints;
+ for i = 1:length(rc)
+ switch rc{i}{2}
+ case {'>','>='}
+ ivar(nrow) = rc{i}{1};
+ ieq(nrow) = rc{i}{1};
+ lb(nrow) = eval(rc{i}{3});
+ case {'<','<='}
+ ivar(nrow) = rc{i}{1};
+ ieq(nrow) = rc{i}{1};
+ ub(nrow) = eval(rc{i}{3});
+ otherwise
+ error('Wrong operator in get_complementarity_conditions')
+ end
+ nrow = nrow + 1;
+ end
+ end
+end
+
+i_base = {};
+i_alt = {};
+etags = M.equations_tags;
+m = 1;
+base = true;
+for i=1:size(etags,1)
+ [iv,boundary,operator] = parse_constraint(etags{i,3},M.endo_names,M.params,M.param_names);
+ if strcmp(etags{i,2},'OCCBIN')
+ if base
+ i_alt{m} = 1:M.eq_nbr;
+ i_alt{m}(etags{i,1}) = [];
+ c_base{m,1} = etags{i,1};
+ c_base{m,2} = iv;
+ c_base{m,3} = boundary - steady_state(iv);
+ c_base{m,4} = operator;
+ base = false;
+ else
+ i_base{m} = 1:M.eq_nbr;
+ i_base{m}(etags{i,1}) = [];
+ c_alt{m,1} = etags{i,1};
+ c_alt{m,2} = iv;
+ c_alt{m,3} = boundary - steady_state(iv);
+ c_alt{m,4} = operator;
+ base = true;
+ m = m + 1;
+ end
+ end
+end
+if ~base
+ error('OCCBIN: constraints must come by pair')
+end
+
+function [iv,boundary,operator] = parse_constraint(str,endo_names,params,param_names)
+delim = {'<=','>=','<','>'};
+[c,operator] = strsplit(str,delim);
+operator = operator{1};
+iv = strmatch(strtrim(c{1}),endo_names);
+% try for a number
+boundary = str2num(strtrim(c{2}));
+% if not a number try for a parameter name
+if isempty(boundary)
+ k = strmatch(strtrim(c{2}),param_names);
+ if isempty(k)
+ error(['OCCBIN: illegal constraint ' str]);
+ end
+ boundary = params(k);
+end
diff --git a/matlab/occbin/get_residuals.m b/matlab/occbin/get_residuals.m
new file mode 100644
index 0000000000000000000000000000000000000000..f86d05cfb2e6802be178ff5250dfc788943a6473
--- /dev/null
+++ b/matlab/occbin/get_residuals.m
@@ -0,0 +1,10 @@
+function r = get_residuals(ivar,lb,ub,M,oo)
+
+ss = oo.steady_state;
+for i = 1:length(ivar)
+ % only one is different from zero
+ ss(ivar(i)) = lb(i) + ub(i);
+end
+oo.steady_state = ss;
+
+r = evaluate_model(M,oo);
\ No newline at end of file
diff --git a/matlab/occbin/occbin.m b/matlab/occbin/occbin.m
new file mode 100644
index 0000000000000000000000000000000000000000..ea0780d2111016114fc3da7203bde998798ff6b8
--- /dev/null
+++ b/matlab/occbin/occbin.m
@@ -0,0 +1,19 @@
+function [endo_simul,endo_simul_no_constraint,status] = occbin(M,oo,options)
+% function oo=occbin(M,oo,options) solves linear models with occasionally
+% binding constraints using OCCBIN by L. Guerrieri
+
+status = 1;
+constraint_nbr = sum(strcmp(upper(M.equations_tags(:,2)),'OCCBIN'))/2;
+
+switch(constraint_nbr)
+ case 1
+ [zdatalinear_ zdatapiecewise_ zdatass_ oobase_ ] = ...
+ solve_one_constraint(M,oo,options);
+ case 2
+ [zdatalinear_ zdatapiecewise_ zdatass_ oobase_ ] = ...
+ solve_two_constraints(M,oo,options);
+ otherwise
+ error('OCCBIN can only handle two constraints in a model')
+end
+endo_simul = zdatapiecewise_';
+endo_simul_no_constraint = zdatalinear_';
\ No newline at end of file
diff --git a/matlab/occbin/test_constraint.m b/matlab/occbin/test_constraint.m
new file mode 100644
index 0000000000000000000000000000000000000000..96e41839a2e1ef8e372e4d63f022d17a279d91ea
--- /dev/null
+++ b/matlab/occbin/test_constraint.m
@@ -0,0 +1,16 @@
+function b=test_constraint(x,constr)
+b = zeros(size(x,1),size(constr,1));
+for i=1:size(constr,1)
+ switch constr{i,4}
+ case '<'
+ b(:,i) = ~(x(:,constr{i,2}) < constr{i,3});
+ case '<='
+ b(:,i) = ~(x(:,constr{i,2}) <= constr{i,3});
+ case '>'
+ b(:,i) = ~(x(:,constr{i,2}) > constr{i,3});
+ case '>='
+ b(:,i) = ~(x(:,constr{i,2}) >= constr{i,3});
+ otherwise
+ error('OCCBIN: wrong inequality sign')
+ end
+end
\ No newline at end of file