From 1d10659b59b0f5ff26429fd49c8226f49db37293 Mon Sep 17 00:00:00 2001
From: Johannes Pfeifer <jpfeifer@gmx.de>
Date: Wed, 16 Jun 2021 13:21:49 +0200
Subject: [PATCH] get_complementarity_conditions.m: fix equation numbering with
ramsey_model
M_.equation_tags already contains the correct equation number
---
matlab/lmmcp/get_complementarity_conditions.m | 3 --
tests/Makefile.am | 1 +
tests/lmmcp/MCP_ramsey.mod | 33 +++++++++++++++++++
3 files changed, 34 insertions(+), 3 deletions(-)
create mode 100644 tests/lmmcp/MCP_ramsey.mod
diff --git a/matlab/lmmcp/get_complementarity_conditions.m b/matlab/lmmcp/get_complementarity_conditions.m
index a22e61a15a..f1305d5d2d 100644
--- a/matlab/lmmcp/get_complementarity_conditions.m
+++ b/matlab/lmmcp/get_complementarity_conditions.m
@@ -52,9 +52,6 @@ etags = M_.equations_tags;
for i=1:size(etags,1)
if strcmp(etags{i,2},'mcp')
eq_nbr = etags{i,1};
- if ramsey_policy
- eq_nbr = eq_nbr + M_.ramsey_eq_nbr;
- end
str = etags{i,3};
kop = strfind(etags{i,3},'<');
if ~isempty(kop)
diff --git a/tests/Makefile.am b/tests/Makefile.am
index 38ab3118e0..e4edc32548 100644
--- a/tests/Makefile.am
+++ b/tests/Makefile.am
@@ -7,6 +7,7 @@ MODFILES = \
lmmcp/rbcii.mod \
lmmcp/purely_backward.mod \
lmmcp/purely_forward.mod \
+ lmmcp/MCP_ramsey.mod \
ep/rbc_mc.mod \
estimation/TaRB/fs2000_tarb.mod \
observation_trends_and_prefiltering/MCMC/Trend_loglin_no_prefilt_first_obs_MC.mod \
diff --git a/tests/lmmcp/MCP_ramsey.mod b/tests/lmmcp/MCP_ramsey.mod
new file mode 100644
index 0000000000..34775e5883
--- /dev/null
+++ b/tests/lmmcp/MCP_ramsey.mod
@@ -0,0 +1,33 @@
+//Toy model of Alichi et al. (2015): Avoiding Dark Corners: A Robust Monetary Policy Framework for the United States
+// checks whether lmmcp works with ramsey_model
+
+var i y pi;
+varexo e_y e_pi;
+parameters beta1 beta2 beta3 lambda1 lambda2 pi_bar;
+
+beta1 = 0.6;
+beta2 = 0.25;
+beta3 = -0.2;
+lambda1 = 0.7;
+lambda2 = 0.1;
+pi_bar = 2.0;
+
+model;
+[mcp = 'i > 0']
+y = beta1*y(-1) + beta2*y(+1) + beta3*(i-pi(+1)) + e_y;
+pi = lambda1*pi(+1) + (1-lambda1)*pi(-1) + lambda2*y + e_pi;
+end;
+
+planner_objective (pi-pi_bar)^2 + y^2;
+ramsey_model(planner_discount=1.0);
+histval;
+y(0) = -2.0;
+pi(0) = 1.0;
+end;
+
+steady;
+
+perfect_foresight_setup(periods=50);
+perfect_foresight_solver(lmmcp);
+
+rplot i;
\ No newline at end of file
--
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