From 5d321c86ce19ea366564b8a776aa6c315932b4c4 Mon Sep 17 00:00:00 2001
From: Michel Juillard <michel.juillard@mjui.fr>
Date: Sat, 16 Apr 2016 17:20:48 +0200
Subject: [PATCH] add test case for purely backward model

---
 tests/stochastic_purely_backward/rs.mod | 62 +++++++++++++++++++++++++
 1 file changed, 62 insertions(+)
 create mode 100644 tests/stochastic_purely_backward/rs.mod

diff --git a/tests/stochastic_purely_backward/rs.mod b/tests/stochastic_purely_backward/rs.mod
new file mode 100644
index 000000000..62e5f0448
--- /dev/null
+++ b/tests/stochastic_purely_backward/rs.mod
@@ -0,0 +1,62 @@
+//Rudebusch Svensson (1999) model with optimized policy rule
+
+var pi y i;
+varexo epsilon eta;
+
+parameters alpha_pi1 alpha_pi2 alpha_pi3 alpha_pi4 alpha_y
+           beta_y1 beta_y2 beta_r
+           gamma_pi1 gamma_pi2 gamma_pi3 gamma_pi4
+           gamma_y1 gamma_y2 gamma_i1 gamma_i2 gamma_i3; 
+
+
+alpha_pi1 = 0.7;
+alpha_pi2 = -0.1;
+alpha_pi3 = 0.28;
+alpha_pi4 = 0.12;
+alpha_y   = 0.14;
+beta_y1   = 1.16;
+beta_y2   = -0.25;
+beta_r    = 0.1;
+gamma_pi1 = 0.88;
+gamma_pi2 = 0.30;
+gamma_pi3 = 0.38;
+gamma_pi4 = 0.13;
+gamma_y1  = 1.30;
+gamma_y2  = -0.33;
+gamma_i1  = 0.47;
+gamma_i2  = -0.06;
+gamma_i3  = -0.03;
+
+
+
+
+model(linear);
+pi = alpha_pi1*pi(-1) +alpha_pi2*pi(-2) +alpha_pi3*pi(-3) +alpha_pi4*pi(-4) + alpha_y*y(-1) + epsilon;
+y  = beta_y1*y(-1) + beta_y2*y(-2) - beta_r*((i(-1)+i(-2)+i(-3)+i(-4))/4 - (pi(-1)+pi(-2)+pi(-3)+pi(-4))/4) + eta;
+i =  gamma_pi1*pi + gamma_pi2*pi(-1) + gamma_pi3*pi(-2) + gamma_pi4*pi(-3)
+     + gamma_y1*y + gamma_y2*y(-1) + gamma_i1*i(-1) + gamma_i2*i(-2) + gamma_i3*i(-3);
+end;          
+
+stoch_simul(irf=0);
+
+A = diag(ones(12,1));
+A(3,1) = -0.88;
+A(3,2) = -1.30;
+B = [ 0.7   0.14  0     -0.1    0    0     0.28  0  0     0.12  0 0;
+      0.025 1.16 -0.025 0.025 -0.25 -0.025 0.025 0 -0.025 0.025 0 -0.025;
+      0.30  -0.33 0.47  0.38    0   -0.06  0.13  0 -0.03  0     0 0;
+      1 0 0 0 0 0 0 0 0 0 0 0;
+      0 1 0 0 0 0 0 0 0 0 0 0;
+      0 0 1 0 0 0 0 0 0 0 0 0;
+      0 0 0 1 0 0 0 0 0 0 0 0;
+      0 0 0 0 1 0 0 0 0 0 0 0;
+      0 0 0 0 0 1 0 0 0 0 0 0;
+      0 0 0 0 0 0 1 0 0 0 0 0;
+      0 0 0 0 0 0 0 1 0 0 0 0;
+      0 0 0 0 0 0 0 0 1 0 0 0];
+
+eigenvalues = sort(abs(eig(A\B)));
+if (max(sort(abs(oo_.dr.eigval)) - eigenvalues(3:end))) > 1e-13;
+   error(sprintf('Eigenvalues aren''t correct. Absolute maximum error: %f',max(abs(oo_.dr.eigval - eig(A)))));
+end;
+