Restrictions on parameters during estimation ---------------------------------------------- Sometimes we need to set additional restrictions on parameters during estimation. For instance, in a regime switching model, one may need a normalization assumption in order to label the states. All kinds of functions of both estimated and non-estimated parameters are allowed as long as those functions are known to Matlab or on the Matlab path. There is a way of setting these restriction in the model file of a DSGE model. However, setting these restrictions outside the model file as is done below should be preferred. In this case, the restrictions are organized in a cell array :: restrictions={ 'f1(theta)>=f2(theta)' ... 'h1(theta)<=h2(theta)' }; and passed along to the model object using option **estim_nonlinear_restrictions**. See the section on estimation for more detail.