function [steady_state,params,check] = dyn_ramsey_static(ys_init,M,options_,oo) % function [steady_state,params,check] = dyn_ramsey_static_(ys_init,M,options_,oo) % Computes the steady state for optimal policy % % INPUTS % ys_init: vector of endogenous variables or instruments % M: Dynare model structure % options: Dynare options structure % oo: Dynare results structure % % OUTPUTS % steady_state: steady state value % params: parameters at steady state, potentially updated by % steady_state file % check: error indicator, 0 if everything is OK % % SPECIAL REQUIREMENTS % none % Copyright (C) 2003-2020 Dynare Team % % This file is part of Dynare. % % Dynare is free software: you can redistribute it and/or modify % it under the terms of the GNU General Public License as published by % the Free Software Foundation, either version 3 of the License, or % (at your option) any later version. % % Dynare is distributed in the hope that it will be useful, % but WITHOUT ANY WARRANTY; without even the implied warranty of % MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the % GNU General Public License for more details. % % You should have received a copy of the GNU General Public License % along with Dynare. If not, see . params = M.params; check = 0; options_.steadystate.nocheck = 1; %locally disable checking because Lagrange multipliers are not accounted for in evaluate_steady_state_file % dyn_ramsey_static_1 is a subfunction nl_func = @(x) dyn_ramsey_static_1(x,M,options_,oo); % check_static_model is a subfunction if check_static_model(ys_init,M,options_,oo) && ~options_.steadystate_flag steady_state = ys_init; return elseif options_.steadystate_flag k_inst = []; inst_nbr = size(options_.instruments,1); for i = 1:inst_nbr k_inst = [k_inst; strmatch(options_.instruments{i}, M.endo_names, 'exact')]; end if inst_nbr == 1 %solve for instrument, using univariate solver, starting at initial value for instrument [inst_val, info1]= csolve(nl_func,ys_init(k_inst),'',options_.solve_tolf,options_.ramsey.maxit); if info1==1 || info1==3 check=81; end if info1==4 check=87; end else %solve for instrument, using multivariate solver, starting at %initial value for instrument opt = options_; opt.jacobian_flag = false; [inst_val,info1] = dynare_solve(nl_func,ys_init(k_inst), ... opt); if info1~=0 check=81; end end ys_init(k_inst) = inst_val; exo_ss = [oo.exo_steady_state oo.exo_det_steady_state]; [xx,params] = evaluate_steady_state_file(ys_init,exo_ss,M,options_,~options_.steadystate.nocheck); %run steady state file again to update parameters [~,~,steady_state] = nl_func(inst_val); %compute and return steady state else n_var = M.orig_endo_nbr; xx = oo.steady_state(1:n_var); opt = options_; opt.jacobian_flag = false; [xx,info1] = dynare_solve(nl_func,xx,opt); if info1~=0 check=81; end [~,~,steady_state] = nl_func(xx); end function [resids,rJ,steady_state] = dyn_ramsey_static_1(x,M,options_,oo) resids = []; rJ = []; mult = []; % recovering usefull fields params = M.params; endo_nbr = M.endo_nbr; endo_names = M.endo_names; orig_endo_nbr = M.orig_endo_nbr; aux_vars_type = [M.aux_vars.type]; orig_endo_aux_nbr = orig_endo_nbr + min(find(aux_vars_type == 6)) - 1; orig_eq_nbr = M.orig_eq_nbr; inst_nbr = orig_endo_aux_nbr - orig_eq_nbr; % indices of Lagrange multipliers fname = M.fname; if options_.steadystate_flag k_inst = []; instruments = options_.instruments; for i = 1:size(instruments,1) k_inst = [k_inst; strmatch(instruments{i}, endo_names, 'exact')]; end ys_init=zeros(size(oo.steady_state)); %create starting vector for steady state computation as only instrument value is handed over ys_init(k_inst) = x; %set instrument, the only value required for steady state computation, to current value [x,params,check] = evaluate_steady_state_file(ys_init,... %returned x now has size endo_nbr as opposed to input size of n_instruments [oo.exo_steady_state; ... oo.exo_det_steady_state], ... M,options_,~options_.steadystate.nocheck); if any(imag(x(1:M.orig_endo_nbr))) %return with penalty resids=1+sum(abs(imag(x(1:M.orig_endo_nbr)))); %return with penalty steady_state=NaN(endo_nbr,1); return end end xx = zeros(endo_nbr,1); %initialize steady state vector xx(1:M.orig_endo_nbr) = x(1:M.orig_endo_nbr); %set values of original endogenous variables based on steady state file or initial value % setting steady state of auxiliary variables that depends on original endogenous variables if any([M.aux_vars.type] ~= 6) %auxiliary variables other than multipliers needs_set_auxiliary_variables = 1; if M.set_auxiliary_variables fh = str2func([M.fname '.set_auxiliary_variables']); s_a_v_func = @(z) fh(z,... [oo.exo_steady_state,... oo.exo_det_steady_state],... params); else s_a_v_func = z; end xx = s_a_v_func(xx); else needs_set_auxiliary_variables = 0; end % value and Jacobian of objective function ex = zeros(1,M.exo_nbr); [U,Uy,Uyy] = feval([fname '.objective.static'],x,ex, params); Uyy = reshape(Uyy,endo_nbr,endo_nbr); % set multipliers and auxiliary variables that % depends on multipliers to 0 to compute residuals if (options_.bytecode) [res, junk] = bytecode('static',xx,[oo.exo_steady_state oo.exo_det_steady_state], ... params, 'evaluate'); fJ = junk.g1; else [res,fJ] = feval([fname '.static'],xx,[oo.exo_steady_state oo.exo_det_steady_state], ... params); end % index of multipliers and corresponding equations % the auxiliary variables before the Lagrange multipliers are treated % as ordinary endogenous variables aux_eq = [1:orig_endo_aux_nbr, orig_endo_aux_nbr+orig_eq_nbr+1:size(fJ,1)]; A = fJ(1:orig_endo_aux_nbr,orig_endo_nbr+find(aux_vars_type==6)); y = res(1:orig_endo_aux_nbr); mult = -A\y; resids1 = y+A*mult; if inst_nbr == 1 r1 = sqrt(resids1'*resids1); else [q,r,e] = qr([A y]'); k = size(A,1)+(1-inst_nbr:0); r1 = r(end,k)'; end if options_.steadystate_flag resids = r1; else resids = [res(orig_endo_nbr+(1:orig_endo_nbr-inst_nbr)); r1]; end rJ = []; if needs_set_auxiliary_variables steady_state = s_a_v_func([xx(1:orig_endo_aux_nbr); mult]); else steady_state = [xx(1:orig_endo_aux_nbr); mult]; end function result = check_static_model(ys,M,options_,oo) result = false; if (options_.bytecode) [res, ~] = bytecode('static',ys,[oo.exo_steady_state oo.exo_det_steady_state], ... M.params, 'evaluate'); else res = feval([M.fname '.static'],ys,[oo.exo_steady_state oo.exo_det_steady_state], ... M.params); end if norm(res) < options_.solve_tolf result = true; end