diff --git a/matlab/lmmcp/get_complementarity_conditions.m b/matlab/lmmcp/get_complementarity_conditions.m index a22e61a15..f1305d5d2 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 395c9aa75..dfaee4eea 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 000000000..34775e588 --- /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