I'm running a new keynesian stochastic model.I'm evaluating the welfare loss with a ramsey_policy rule. Then I switched to discretionary_policy, but I meet some errors messages. In particular

- Code: Select all
`Error using discretionary_policy_1 (line 71)`

discretionary_policy: the objective function must have zero first order derivatives

Error in stoch_simul (line 76)

[oo_.dr,ys,info] = discretionary_policy_1(oo_,options_.instruments);

Error in discretionary_policy (line 25)

info = stoch_simul(var_list);

Error in ed (line 231)

discretionary_policy(var_list_);

Error in dynare (line 223)

evalin('base',fname) ;

I attach here my code. What should I change?

Thank you in advance