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    • Sébastien Villemot's avatar
      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
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