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
50
51
52
53
|
var y_backward dummy_var;
parameters rho_1 rho_2;
rho_1=0.2;
rho_2=0.1;
// Equilibrium conditions
model(linear);
y_backward=rho_1*y_backward(-1)+rho_2*y_backward(-2);
dummy_var=0.9*dummy_var(+1);
end;
// Set starting value for solver
initval;
y_backward=1;
end;
steady;
// Set initial conditions for state variables
histval;
y_backward(0)=1;
y_backward(-1)=2;
end;
// Check the Blanchard-Kahn conditions
check;
// Deterministic simulation of the model for 200 periods
perfect_foresight_setup(periods=100);
perfect_foresight_solver(tolf=1e-12);
if ~oo_.deterministic_simulation.status
error('Perfect foresight simulation failed')
end
// Display the path of consumption and capital
rplot y_backward;
junk=zeros(1,options_.periods+M_.maximum_lag);
junk(1)=2;
junk(2)=1;
for ii=3:options_.periods+M_.maximum_lag+M_.maximum_lead
junk(ii)=M_.params(strmatch('rho_1',M_.param_names,'exact'))*junk(ii-1)+M_.params(strmatch('rho_2',M_.param_names,'exact'))*junk(ii-2);
end
if max(abs(junk(M_.maximum_lag+1:end)-oo_.endo_simul(strmatch('y_backward',M_.endo_names,'exact'),1:end-M_.maximum_lead)))>1e-10
error('Solution of purely backwards model not correct')
end
|
