From c8812b552e448aadcbd40579f90a443263f624f5 Mon Sep 17 00:00:00 2001
From: michel <michel@ac1d8469-bf42-47a9-8791-bf33cf982152>
Date: Tue, 27 Sep 2005 20:22:40 +0000
Subject: [PATCH] changed computation of steady state for linear models

git-svn-id: https://www.dynare.org/svn/dynare/dynare_v4@464 ac1d8469-bf42-47a9-8791-bf33cf982152
---
 matlab/dynare_solve.m |  2 +-
 matlab/resol.m        | 30 ++++++++++++++++++------------
 matlab/solve1.m       |  2 ++
 3 files changed, 21 insertions(+), 13 deletions(-)

diff --git a/matlab/dynare_solve.m b/matlab/dynare_solve.m
index 8792cbd78..b7a38a891 100644
--- a/matlab/dynare_solve.m
+++ b/matlab/dynare_solve.m
@@ -3,7 +3,7 @@
 function [x,cheik] = dynare_solve(func,x,varargin)
   global options_
   
-  options_ = set_default_option(options_,'solve_algo',0);
+  options_ = set_default_option(options_,'solve_algo',2);
   cheik = 0;
   func = str2func(func);
   if options_.solve_algo == 0
diff --git a/matlab/resol.m b/matlab/resol.m
index 79109660a..fc948be1d 100644
--- a/matlab/resol.m
+++ b/matlab/resol.m
@@ -32,21 +32,27 @@ if M_.exo_det_nbr > 0
   tempexdet = oo_.exo_det_simul;
   oo_.exo_det_simul = ones(M_.maximum_lag+1,1)*oo_.exo_steady_statedet_';
 end
+dr.ys = ys;
 fh = str2func([M_.fname '_static']);
-if max(abs(feval(fh,ys,oo_.exo_steady_state))) > options_.dynatol & options_.olr == 0
-  if exist([M_.fname '_steadystate'])
-    [dr.ys,check1] = feval([M_.fname '_steadystate'],ys,oo_.exo_steady_state);
-  else
-    [dr.ys,check1] = dynare_solve([M_.fname '_static'],ys,oo_.exo_steady_state);
+if options_.linear == 0
+  if max(abs(feval(fh,dr.ys,oo_.exo_steady_state))) > options_.dynatol & options_.olr == 0
+    if exist([M_.fname '_steadystate'])
+      [dr.ys,check1] = feval([M_.fname '_steadystate'],dr.ys,oo_.exo_steady_state);
+    else
+      [dr.ys,check1] = dynare_solve(fh,dr.ys,oo_.exo_steady_state);
+    end
+    if check1
+      info(1) = 20;
+      resid = feval(fh,ys,oo_.exo_steady_state);
+      info(2) = resid'*resid; % penalty...
+      return
+    end
   end
-  if check1
-    info(1) = 20;
-    resid = feval(fh,ys,oo_.exo_steady_state);
-    info(2) = resid'*resid; % penalty...
-    return
+else
+  [fvec,jacob] = feval(fh,dr.ys,oo_.exo_steady_state);
+  if max(abs(fvec)) > options_.dynatol & options_.olr == 0
+    dr.ys = dr.ys-jacob\fvec;
   end
-else 
-  dr.ys = ys;
 end
 
 dr.fbias = zeros(M_.endo_nbr,1);
diff --git a/matlab/solve1.m b/matlab/solve1.m
index 57efe303f..d4f4d749b 100644
--- a/matlab/solve1.m
+++ b/matlab/solve1.m
@@ -48,6 +48,8 @@ function [x,check] = solve1(func,x,j1,j2,varargin)
     %  g(j) = fvec'*fjac(:,j) ;
     %end
     [fvec,fjac] = feval(func,x,varargin{:});
+    fvec = fvec(j1);
+    fjac = fjac(j1,j2);
     g = (fvec'*fjac)';
     if options_.debug
       disp(['cond(fjac) ' num2str(cond(fjac))])