44 lines
1.2 KiB
Modula-2
44 lines
1.2 KiB
Modula-2
// Example that triggers homotopy in perfect foresight simulation.
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// Tests the endval_steady, homotopy_linearization_fallback options, and a few more.
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var Consumption, Capital, LoggedProductivity;
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varexo LoggedProductivityInnovation;
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parameters beta, alpha, delta, rho;
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beta = .985;
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alpha = 1/3;
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delta = alpha/10;
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rho = .9;
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model;
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1/Consumption = beta/Consumption(1)*(alpha*exp(LoggedProductivity(1))*Capital^(alpha-1)+1-delta);
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Capital = exp(LoggedProductivity)*Capital(-1)^alpha+(1-delta)*Capital(-1)-Consumption;
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LoggedProductivity = rho*LoggedProductivity(-1)+LoggedProductivityInnovation;
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end;
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initval;
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LoggedProductivityInnovation = 0;
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end;
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steady;
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endval;
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LoggedProductivityInnovation = 1;
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Consumption = 0.1;
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Capital = 1;
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end;
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perfect_foresight_setup(periods=200, endval_steady);
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perfect_foresight_solver(homotopy_initial_step_size = 0.5,
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homotopy_max_completion_share = 0.6,
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homotopy_min_step_size = 0.0001,
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homotopy_linearization_fallback,
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steady_solve_algo = 13, steady_tolf=1e-7);
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if ~oo_.deterministic_simulation.status
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error('Perfect foresight simulation failed')
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end
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