Commit ab6b6425 authored by Johannes Pfeifer's avatar Johannes Pfeifer
Browse files

NK_baseline_steadystate.m: provide proper error handling

parent c033a08c
......@@ -2,14 +2,14 @@ function [ys,params,check] = NK_baseline_steadystate(ys,exo,M_,options_)
% function [ys,params,check] = NK_baseline_steadystate(ys,exo,M_,options_)
% computes the steady state for the NK_baseline.mod and uses a numerical
% solver to do so
% Inputs:
% Inputs:
% - ys [vector] vector of initial values for the steady state of
% the endogenous variables
% - exo [vector] vector of values for the exogenous variables
% - M_ [structure] Dynare model structure
% - options [structure] Dynare options structure
%
% Output:
% Output:
% - ys [vector] vector of steady state values for the the endogenous variables
% - params [vector] vector of parameter values
% - check [scalar] set to 0 if steady state computation worked and to
......@@ -35,8 +35,8 @@ function [ys,params,check] = NK_baseline_steadystate(ys,exo,M_,options_)
% read out parameters to access them with their name
NumberOfParameters = M_.param_nbr;
for ii = 1:NumberOfParameters
paramname = M_.param_names{ii};
eval([ paramname ' = M_.params(' int2str(ii) ');']);
paramname = M_.param_names{ii};
eval([ paramname ' = M_.params(' int2str(ii) ');']);
end
% initialize indicator
check = 0;
......@@ -65,6 +65,7 @@ Lambdax=mu_z;
%set the parameter gammma1
gammma1=mu_z*mu_I/betta-(1-delta);
if gammma1<0 % parameter violates restriction; Preventing this cannot be implemented via prior restriction as it is a composite of different parameters and the valid prior region has unknown form
params=M_.params;
check=1; %set failure indicator
return; %return without updating steady states
end
......@@ -86,13 +87,20 @@ vp=(1-thetap)/(1-thetap*PI^((1-chi)*epsilon))*PIstar^(-epsilon);
vw=(1-thetaw)/(1-thetaw*PI^((1-chiw)*eta)*mu_z^eta)*PIstarw^(-eta);
tempvaromega=alppha/(1-alppha)*w/r*mu_z*mu_I;
[ld,fval,exitflag]=fzero(@(ld)(1-betta*thetaw*mu_z^(eta-1)*PI^(-(1-chiw)*(1-eta)))/(1-betta*thetaw*mu_z^(eta*(1+gammma))*PI^(eta*(1-chiw)*(1+gammma)))...
-(eta-1)/eta*wstar/(varpsi*PIstarw^(-eta*gammma)*ld^gammma)*((1-h*mu_z^(-1))^(-1)-betta*h*(mu_z-h)^(-1))*...
((mu_A*mu_z^(-1)*vp^(-1)*tempvaromega^alppha-tempvaromega*(1-(1-delta)*(mu_z*mu_I)^(-1)))*ld-vp^(-1)*Phi)^(-1),0.25,options);
try
%proper error handling for cases for infeasible initial value, which would result in error instead of valid exitflag
[ld,fval,exitflag]=fzero(@(ld)(1-betta*thetaw*mu_z^(eta-1)*PI^(-(1-chiw)*(1-eta)))/(1-betta*thetaw*mu_z^(eta*(1+gammma))*PI^(eta*(1-chiw)*(1+gammma)))...
-(eta-1)/eta*wstar/(varpsi*PIstarw^(-eta*gammma)*ld^gammma)*((1-h*mu_z^(-1))^(-1)-betta*h*(mu_z-h)^(-1))*...
((mu_A*mu_z^(-1)*vp^(-1)*tempvaromega^alppha-tempvaromega*(1-(1-delta)*(mu_z*mu_I)^(-1)))*ld-vp^(-1)*Phi)^(-1),0.25,options);
catch
exitflag = 0;
end
if exitflag <1
%indicate the SS computation was not sucessful; this would also be detected by Dynare
%setting the indicator here shows how to use this functionality to
%filter out parameter draws
params=M_.params;
check=1; %set failure indicator
return; %return without updating steady states
end
......@@ -115,11 +123,11 @@ g2=epsilon/(epsilon-1)*g1;
params=NaN(NumberOfParameters,1);
for iter = 1:length(M_.params) %update parameters set in the file
eval([ 'params(' num2str(iter) ') = ' M_.param_names{iter} ';' ])
eval([ 'params(' num2str(iter) ') = ' M_.param_names{iter} ';' ])
end
NumberOfEndogenousVariables = M_.orig_endo_nbr; %auxiliary variables are set automatically
for ii = 1:NumberOfEndogenousVariables
varname = M_.endo_names{ii};
eval(['ys(' int2str(ii) ') = ' varname ';']);
varname = M_.endo_names{ii};
eval(['ys(' int2str(ii) ') = ' varname ';']);
end
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