dynare/matlab/partial_information/PCL_resol.m

function [dr,info]=PCL_resol(ys,check_flag)
% function [dr,info]=PCL_resol(ys,check_flag)
% Computes first and second order approximations
%
% INPUTS
%    ys:             vector of variables in steady state
%    check_flag=0:   all the approximation is computed
%    check_flag=1:   computes only the eigenvalues
%
% OUTPUTS
%    dr:             structure of decision rules for stochastic simulations
%    info=1:         the model doesn't determine the current variables '...' uniquely
%    info=2:         MJDGGES returns the following error code'
%    info=3:         Blanchard Kahn conditions are not satisfied: no stable '...' equilibrium
%    info=4:         Blanchard Kahn conditions are not satisfied:'...' indeterminacy
%    info=5:         Blanchard Kahn conditions are not satisfied:'...' indeterminacy due to rank failure
%    info=6:         The jacobian evaluated at the steady state is complex.
%    info=19:        The steadystate file did not compute the steady state (inconsistent deep parameters).
%    info=20:        can't find steady state info(2) contains sum of sqare residuals
%    info=21:        steady state is complex
%                               info(2) contains sum of sqare of
%                               imaginary part of steady state
%    info=30:        Variance can't be computed
%
% SPECIAL REQUIREMENTS
%    none

% Copyright © 2001-2024 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 <https://www.gnu.org/licenses/>.

global M_ options_ oo_
global it_

jacobian_flag = false;

info = 0;

it_ = M_.maximum_lag + 1 ;

if M_.exo_nbr == 0
    oo_.exo_steady_state = [] ;
end

% check if ys is steady state
tempex = oo_.exo_simul;
oo_.exo_simul = repmat(oo_.exo_steady_state',M_.maximum_lag+M_.maximum_lead+1,1);
if M_.exo_det_nbr > 0
    tempexdet = oo_.exo_det_simul;
    oo_.exo_det_simul = repmat(oo_.exo_det_steady_state',M_.maximum_lag+M_.maximum_lead+1,1);
end
dr.ys = ys;
check1 = 0;
% testing for steadystate file
static_resid = str2func(sprintf('%s.sparse.static_resid', M_.fname));
static_g1 = str2func(sprintf('%s.sparse.static_g1', M_.fname));
function [resid, g1] = static_resid_g1(y, x, params)
    [resid, T_order, T] = static_resid(y, x, params);
    g1 = static_g1(y, x, params, M_.static_g1_sparse_rowval, M_.static_g1_sparse_colval, M_.static_g1_sparse_colptr, T_order, T);
end

if options_.steadystate_flag
    [dr.ys,check1] = feval([M_.fname '_steadystate'],dr.ys,...
                           [oo_.exo_steady_state; ...
                        oo_.exo_det_steady_state]);
    if size(dr.ys,1) < M_.endo_nbr
        if length(M_.aux_vars) > 0
            dr.ys = add_auxiliary_variables_to_steadystate(dr.ys,M_.aux_vars,...
                                                           M_.fname,...
                                                           oo_.exo_steady_state,...
                                                           oo_.exo_det_steady_state,...
                                                           M_.params);
        else
            error([M_.fname '_steadystate.m doesn''t match the model']);
        end
    end

else
    % testing if ys isn't a steady state or if we aren't computing Ramsey policy
    if ~options_.ramsey_policy
        if options_.linear == 0
            % nonlinear models
            if max(abs(static_resid_g1(dr.ys, [oo_.exo_steady_state; ...
                                               oo_.exo_det_steady_state], M_.params))) > options_.solve_tolf
                opt = options_;
                opt.jacobian_flag = false;
                [dr.ys, check1] = dynare_solve(static_resid_g1, dr.ys, options.steady_.maxit, options_.solve_tolf, options_.solve_tolx, ...
                                               opt, [oo_.exo_steady_state; oo_.exo_det_steady_state], M_.params);
            end
        else
            % linear models
            [fvec,jacob] = static_resid_g1(dr.ys, [oo_.exo_steady_state;...
                                                   oo_.exo_det_steady_state], M_.params);
            if max(abs(fvec)) > 1e-12
                dr.ys = dr.ys-jacob\fvec;
            end
        end
    end
end
% testing for problem
if check1
    if options_.steadystate_flag
        info(1)= 19;
        resid = check1 ;
    else
        info(1)= 20;
        resid = static_resid(ys, oo_.exo_steady_state, M_.params);
    end
    info(2) = resid'*resid ;
    return
end

if ~isreal(dr.ys)
    info(1) = 21;
    info(2) = sum(imag(ys).^2);
    dr.ys = real(dr.ys);
    return
end

dr.fbias = zeros(M_.endo_nbr,1);
if( options_.partial_information || options_.ACES_solver)%&& (check_flag == 0)
    [dr,info,M_,options_,oo_] = dr1_PI(dr,check_flag,M_,options_,oo_);
else
    [dr,info,M_,options_,oo_] = dr1(dr,check_flag,M_,options_,oo_);
end
if info(1)
    return
end

if M_.exo_det_nbr > 0
    oo_.exo_det_simul = tempexdet;
end
oo_.exo_simul = tempex;
tempex = [];

end

% 01/01/2003 MJ added dr_algo == 1
% 08/24/2001 MJ uses Schmitt-Grohe and Uribe (2001) constant correction
%               in dr.ghs2
% 05/26/2003 MJ added temporary values for oo_.exo_simul