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    c3d91d5c
    Fix marginal linearization in the context of... · c3d91d5c
    Sébastien Villemot authored
    Fix marginal linearization in the context of perfect_foresight_with_expectation_errors_solver with homotopy
    
    If a solution corresponding to 100% of the shock can’t be found in the first
    informational period, marginal linearization will be performed to extrapolate a
    solution.
    
    However, in subsequent informational periods, this extrapolated solution cannot
    be used for the initial conditions of endogenous variables, because the initial
    conditions are not a true solution of the nonlinear model. For those subsequent
    informational periods, the correct approach is to compute the two solutions
    needed for marginal linearization using as initial conditions the values
    obtained in the same two solutions for the previous informational
    periods (stored as oo_.deterministic_simulation.{sim1,sim2}).
    c3d91d5c
    History
    Fix marginal linearization in the context of...
    Sébastien Villemot authored
    Fix marginal linearization in the context of perfect_foresight_with_expectation_errors_solver with homotopy
    
    If a solution corresponding to 100% of the shock can’t be found in the first
    informational period, marginal linearization will be performed to extrapolate a
    solution.
    
    However, in subsequent informational periods, this extrapolated solution cannot
    be used for the initial conditions of endogenous variables, because the initial
    conditions are not a true solution of the nonlinear model. For those subsequent
    informational periods, the correct approach is to compute the two solutions
    needed for marginal linearization using as initial conditions the values
    obtained in the same two solutions for the previous informational
    periods (stored as oo_.deterministic_simulation.{sim1,sim2}).