1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
|
// Example that triggers homotopy in perfect foresight simulation.
// Tests the homotopy_exclude_varexo option
var Consumption, Capital, LoggedProductivity;
varexo LoggedProductivityInnovation dummy;
parameters beta, alpha, delta, rho;
beta = .985;
alpha = 1/3;
delta = alpha/10;
rho = .9;
model;
1/Consumption = beta/Consumption(1)*(alpha*exp(LoggedProductivity(1))*Capital^(alpha-1)+1-delta)*dummy;
Capital = exp(LoggedProductivity)*Capital(-1)^alpha+(1-delta)*Capital(-1)-Consumption;
LoggedProductivity = rho*LoggedProductivity(-1)+LoggedProductivityInnovation;
end;
initval;
LoggedProductivityInnovation = 0;
dummy = 1;
end;
steady;
endval;
LoggedProductivityInnovation = 1;
dummy = 1;
Consumption = 0.1;
Capital = 1;
end;
perfect_foresight_setup(periods=200, endval_steady);
perfect_foresight_solver(homotopy_exclude_varexo = (dummy),
homotopy_max_completion_share = 0.7,
homotopy_linearization_fallback,
steady_solve_algo = 13);
if ~oo_.deterministic_simulation.status
error('Perfect foresight simulation failed')
end
if oo_.deterministic_simulation.sim1.exo_simul(end, 1) ~= 0.7 ... % productivity must be rescaled
|| oo_.deterministic_simulation.sim1.exo_simul(end, 2) ~= 1 % but not dummy
error('Option homotopy_exclude_varexo not working properly')
end
|
