diff --git a/doc/dynare.texi b/doc/dynare.texi index d157f6bd2..c130b32c9 100644 --- a/doc/dynare.texi +++ b/doc/dynare.texi @@ -1812,7 +1812,7 @@ used outside. A model local variable declaration looks like: It is possible to tag equations written in the model block. A tag can serve different purposes by allowing the user to attach arbitrary informations to each equation and to recover them at runtime. For instance, it is possible to name the -equations, using a syntax like: +equations with a @code{name}-tag, using a syntax like: @example mode; ... @@ -1821,9 +1821,20 @@ mode; ... end; @end example -If all the equations of a model are tagged with a name, the @code{resid} command +Here, @code{name} is the keyword indicating that the tag names the equation. If all the equations +of a model are tagged with a name, the @code{resid} command will display the names of the equations (which may be more informative than the -equation numbers). More informations are available on the @uref{http://www.dynare.org/DynareWiki/EquationsTags, DynareWiki +equation numbers). Several tags for one equation can be separated using a comma. +@example +mode; + ... + [name='Taylor rule',mcp = 'r > -1.94478'] + r = rho*r(-1) + (1-rho)*(gpi*Infl+gy*YGap) + e; + ... +end; +@end example + +More information on tags is available on the @uref{http://www.dynare.org/DynareWiki/EquationsTags, DynareWiki wiki}. @@ -2951,6 +2962,10 @@ option, @pxref{Model declaration}) @item 9 Trust-region algorithm on the entire model. + +@item 10 +Levenberg-Marquardt mixed complementarity problem (LMMCP) solver +(@cite{Kanzow and Petra 2004}) @end table @noindent @@ -3587,6 +3602,9 @@ trigger the computation of the solution with a trust region algorithm. @end table +@item solve_algo +@xref{qz_zero_threshold}. Allows selecting the solver used with @code{stack_solve_algo=7}. + @item no_homotopy By default, the perfect foresight solver uses a homotopy technique if it cannot solve the problem. Concretely, it divides the problem into smaller steps by @@ -3604,12 +3622,13 @@ solved, before using a constant set of operations for the remaining periods. Only used when @code{stack_solve_algo = 5}. Default: @code{1}. @item lmmcp -Solves the perfect foresight model with a mixed complementarity problem solver, -which allows to consider inequality constraints on the endogenous variables +Solves the perfect foresight model with a Levenberg-Marquardt mixed complementarity problem (LMMCP) solver +(@cite{Kanzow and Petra 2004}), which allows to consider inequality constraints on the endogenous variables (such as a ZLB on the nominal interest rate or a model with irreversible investment). This option is equivalent to @code{stack_solve_algo=7} @strong{and} @code{solve_algo=10}. The inequality constraints on the endogenous variables -have to be specified with an equation tag @pxref{Model declaration}. For instance, +have to be specified with an equation tag @pxref{Model declaration}. The tag has to use +the @code{mcp} keyword. For instance, a ZLB on the nominal interest rate would be specified as follows in the model block: @example model; @@ -3620,9 +3639,9 @@ model; end; @end example where 1.94478 is the steady state level of the nominal interest rate and -@code{r} is the nominal interest rate in deviation to the steady state. In the -current implementation, the content of the equation tag is not parsed by the -preprocessor. The inequalities must be as simple as possible: an endogenous +@code{r} is the nominal interest rate in deviation from the steady state. In the +current implementation, the content of the @code{mcp} equation tag is not parsed by the +preprocessor. The inequalities must therefore be as simple as possible: an endogenous variable, followed by a relational operator, followed by a number (not a variable, parameter or expression). Note also that the constraint on an endogenous variable must be associated to an equation and that the mixed @@ -13604,6 +13623,10 @@ Kim, Jinill and Sunghyun Kim (2003): ``Spurious welfare reversals in international business cycle models,'' @i{Journal of International Economics}, 60, 471--500 +@item +Kanzow, Christian and Stefania Petra (2004): ``On a semismooth least squares formulation of +complementarity problems with gap reduction,'' @i{Optimization Methods and Software},19 507--525 + @item Kim, Jinill, Sunghyun Kim, Ernst Schaumburg, and Christopher A. Sims (2008): ``Calculating and using second-order accurate solutions of