davguio7 / OBC-multiple-equilibria

Simulating multiple equilibria in models with occasionally-binding constraints

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OBC-multiple-equilibria

This repository provides documents and codes for simulating multiple equilibria in otherwise-linear rational expectations with occasionally-binding constraints, under the assumption of perfect foresight. The algorithm is an extension of Guerrieri and Iacoviello (2015,JME) and we utilise some results from Holden (2022,ReStat).

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Simulating multiple equilibria in models with occasionally-binding constraints


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