dynare/matlab/osr1.m

function osr1(i_params,i_var,weights)
  global M_ oo_ options_ it_

  klen = M_.maximum_lag + M_.maximum_lead + 1;
  iyv = M_.lead_lag_incidence';
  iyv = iyv(:);
  iyr0 = find(iyv) ;
  it_ = M_.maximum_lag + 1 ;


  if M_.exo_nbr == 0
    oo_.exo_steady_state = [] ;
  end

  if ~ M_.lead_lag_incidence(M_.maximum_lag+1,:) > 0
    error ('OSR: Error in model specification: some variables don"t appear as current') ;
  end

  if M_.maximum_lead == 0
    error ('Backward or static model: no point in using OLR') ;
  end

  exe =zeros(M_.exo_nbr,1);
  
  oo_.dr = set_state_space(oo_.dr,M_);
  
  % check if ys is steady state
  fh = str2func([M_.fname '_static']);
  if max(abs(feval(fh, oo_.steady_state, exe, M_.params))) > options_.dynatol
    [oo_.dr.ys, check] = dynare_solve([M_.fname '_static'], oo_.steady_state, 1, exe, M_.params);
    if check
      error('OLR: convergence problem in DYNARE_SOLVE')
    end
  else
    oo_.dr.ys = oo_.steady_state;
  end

  
  np = size(i_params,1);
  t0 = M_.params(i_params);
  inv_order_var = oo_.dr.inv_order_var;

  H0 = 1e-4*eye(np);
  crit = 1e-7;
  nit = 1000;
  verbose = 2;

  [f,p]=csminwel('osr_obj',t0,H0,[],crit,nit,options_.gradient_method,i_params,...
		inv_order_var(i_var),weights(i_var,i_var));

  %  options = optimset('fminunc');
%  options = optimset('display','iter');
%  [p,f]=fminunc(@osr_obj,t0,options,i_params,...
%		inv_order_var(i_var),weights(i_var,i_var));


  
  disp('')
  disp('OPTIMAL VALUE OF THE PARAMETERS:')
  disp('')
  for i=1:np
    disp(sprintf('%16s %16.6g\n',M_.param_names(i_params(i),:),p(i)))
  end
  disp(sprintf('Objective function : %16.6g\n',f));
  disp(' ')
  oo_.dr=resol(oo_.steady_state,0);

  % 05/10/03 MJ modified to work with osr.m and give full report