function [y, info] = solve_one_boundary(fname, y, x, params, steady_state, ...
                                        y_index_eq, nze, periods, is_linear, Block_Num, y_kmin, maxit_, solve_tolf, lambda, cutoff, stack_solve_algo, forward_backward, is_dynamic, verbose, M, options, oo)
% Computes the deterministic simulation of a block of equation containing
% lead or lag variables
%
% INPUTS
%   fname               [string]        name of the file containing the block
%                                       to simulate
%   y                   [matrix]        All the endogenous variables of the model
%   x                   [matrix]        All the exogenous variables of the model
%   params              [vector]        All the parameters of the model
%   steady_state        [vector]        steady state of the model
%   y_index_eq          [vector of int] The index of the endogenous variables of
%                                       the block
%   nze                 [integer]       number of non-zero elements in the
%                                       jacobian matrix
%   periods             [integer]       number of simulation periods
%   is_linear           [integer]       if is_linear=1 the block is linear
%                                       if is_linear=0 the block is not linear
%   Block_Num           [integer]       block number
%   y_kmin              [integer]       maximum number of lag in the model
%   maxit_              [integer]       maximum number of iteration in Newton
%   solve_tolf          [double]        convergence criteria
%   lambda              [double]        initial value of step size in
%   Newton
%   cutoff              [double]        cutoff to correct the direction in Newton in case
%                                       of singular jacobian matrix
%   stack_solve_algo    [integer]       linear solver method used in the
%                                       Newton algorithm :
%                                            - 1 sparse LU
%                                            - 2 GMRES
%                                            - 3 BicGStab
%                                            - 4 Optimal path length
%   forward_backward    [integer]       The block has to be solve forward
%                                       (1) or backward (0)
%   is_dynamic          [integer]       (1) The block belong to the dynamic
%                                           file and the oo_.deterministic_simulation field has to be uptated
%                                       (0) The block belong to the static
%                                           file and th oo_.deteerminstic
%                                           field remains unchanged
%   verbose            [integer]        (0) iterations are not printed
%                                       (1) iterations are printed
%   indirect_call      [integer]        (0) direct call to the fname
%                                       (1) indirect call via the
%                                       local_fname wrapper
% OUTPUTS
%   y                  [matrix]         All endogenous variables of the model
%   info               [integer]        >=0 no error
%                                       <0 error
%
% ALGORITHM
%   Newton with LU or GMRES or BicGstab for dynamic block
%
% SPECIAL REQUIREMENTS
%   none.
%

% Copyright (C) 1996-2017 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 <http://www.gnu.org/licenses/>.


Blck_size=size(y_index_eq,2);
g2 = [];
g3 = [];
correcting_factor=0.01;
ilu_setup.droptol=1e-10;
max_resa=1e100;
reduced = 0;
if forward_backward
    incr = 1;
    start = y_kmin+1;
    finish = periods+y_kmin;
else
    incr = -1;
    start = periods+y_kmin;
    finish = y_kmin+1;
end

for it_=start:incr:finish
    cvg=0;
    iter=0;
    g1=spalloc( Blck_size, Blck_size, nze);
    while ~(cvg==1 || iter>maxit_)
        if is_dynamic
            [r, y, g1, g2, g3] = feval(fname, y, x, params, steady_state, it_, 0);
        else
            [r, y, g1] = feval(fname, y, x, params);
        end
        if ~isreal(r)
            max_res=(-(max(max(abs(r))))^2)^0.5;
        else
            max_res=max(max(abs(r)));
        end
        if verbose==1
            disp(['iteration : ' int2str(iter+1) ' => ' num2str(max_res) ' time = ' int2str(it_)])
            if is_dynamic
                disp([M.endo_names(y_index_eq,:) num2str([y(it_,y_index_eq)' r g1])])
            else
                disp([M.endo_names(y_index_eq,:) num2str([y(y_index_eq) r g1])])
            end
        end
        if ~isreal(max_res) || isnan(max_res)
            cvg = 0;
        elseif is_linear && iter>0
            cvg = 1;
        else
            cvg=(max_res<solve_tolf);
        end
        if ~cvg
            if iter>0
                if ~isreal(max_res) || isnan(max_res) || (max_resa<max_res && iter>1)
                    if isnan(max_res) || (max_resa<max_res && iter>0)
                        detJ=det(g1a);
                        if(abs(detJ)<1e-7)
                            max_factor=max(max(abs(g1a)));
                            ze_elem=sum(diag(g1a)<cutoff);
                            if verbose
                                disp([num2str(full(ze_elem),'%d') ' elements on the Jacobian diagonal are below the cutoff (' num2str(cutoff,'%f') ')'])
                            end
                            if correcting_factor<max_factor
                                correcting_factor=correcting_factor*4;
                                if verbose
                                    disp(['The Jacobain matrix is singular, det(Jacobian)=' num2str(detJ,'%f') '.'])
                                    disp(['    trying to correct the Jacobian matrix:'])
                                    disp(['    correcting_factor=' num2str(correcting_factor,'%f') ' max(Jacobian)=' num2str(full(max_factor),'%f')])
                                end
                                dx = - r/(g1+correcting_factor*speye(Blck_size));
                                y(it_,y_index_eq)=ya_save+lambda*dx;
                                continue
                            else
                                if verbose
                                    disp('The singularity of the jacobian matrix could not be corrected')
                                end
                                info = -Block_Num*10;
                                return
                            end
                        end
                    elseif lambda>1e-8
                        lambda=lambda/2;
                        reduced = 1;
                        if verbose
                            disp(['reducing the path length: lambda=' num2str(lambda,'%f')])
                        end
                        if is_dynamic
                            y(it_,y_index_eq)=ya_save-lambda*dx;
                        else
                            y(y_index_eq)=ya_save-lambda*dx;
                        end
                        continue
                    else
                        if verbose
                            if cutoff==0
                                fprintf('Error in simul: Convergence not achieved in block %d, at time %d, after %d iterations.\n Increase "options_.simul.maxit".\n',Block_Num, it_, iter);
                            else
                                fprintf('Error in simul: Convergence not achieved in block %d, at time %d, after %d iterations.\n Increase "options_.simul.maxit" or set "cutoff=0" in model options.\n',Block_Num, it_, iter);
                            end
                        end
                        if is_dynamic
                            oo_.deterministic_simulation.status = 0;
                            oo_.deterministic_simulation.error = max_res;
                            oo_.deterministic_simulation.iterations = iter;
                            oo_.deterministic_simulation.block(Block_Num).status = 0;% Convergency failed.
                            oo_.deterministic_simulation.block(Block_Num).error = max_res;
                            oo_.deterministic_simulation.block(Block_Num).iterations = iter;
                        end
                        info = -Block_Num*10;
                        return
                    end
                else
                    if lambda<1
                        lambda=max(lambda*2, 1);
                    end
                end
            end
            if is_dynamic
                ya = y(it_,y_index_eq)';
            else
                ya = y(y_index_eq);
            end
            ya_save=ya;
            g1a=g1;
            if ~is_dynamic && options.solve_algo==0
                if verbose
                    disp('steady: fsolve')
                end
                if ~isoctave
                    if ~user_has_matlab_license('optimization_toolbox')
                        error('SOLVE_ONE_BOUNDARY: you can''t use solve_algo=0 since you don''t have MATLAB''s Optimization Toolbox')
                    end
                end
                options=optimset('fsolve');
                options.MaxFunEvals = 50000;
                options.MaxIter = 2000;
                options.TolFun=1e-8;
                options.Display = 'iter';
                options.Jacobian = 'on';
                if ~isoctave
                    [yn,fval,exitval,output] = fsolve(@local_fname, y(y_index_eq), ...
                                                      options, x, params, steady_state, y, y_index_eq, fname, 0);
                else
                    % Under Octave, use a wrapper, since fsolve() does not have a 4th arg
                    func = @(z) local_fname(z, x, params, steady_state, y, y_index_eq, fname, 0);
                    % The Octave version of fsolve does not converge when it starts from the solution
                    fvec = feval(func,y(y_index_eq));
                    if max(abs(fvec)) >= options.solve_tolf
                        [yn,fval,exitval,output] = fsolve(func,y(y_index_eq),options);
                    else
                        yn = y(y_index_eq);
                        exitval = 3;
                    end
                end
                y(y_index_eq) = yn;
                if exitval > 0
                    info = 0;
                else
                    info = -Block_Num*10;
                end
            elseif (~is_dynamic && options.solve_algo==2) || (is_dynamic && stack_solve_algo==4)
                if verbose==1 && ~is_dynamic
                    disp('steady: LU + lnsrch1')
                end
                lambda=1;
                stpmx = 100 ;
                if is_dynamic
                    stpmax = stpmx*max([sqrt(ya'*ya);size(y_index_eq,2)]);
                else
                    stpmax = stpmx*max([sqrt(ya'*ya);size(y_index_eq,2)]);
                end
                nn=1:size(y_index_eq,2);
                g = (r'*g1)';
                f = 0.5*r'*r;
                p = -g1\r ;
                if is_dynamic
                    [ya,f,r,check]=lnsrch1(y(it_,:)',f,g,p,stpmax, ...
                                           'lnsrch1_wrapper_one_boundary',nn, ...
                                           y_index_eq, options.solve_tolx, y_index_eq, fname, y, x, params, steady_state, it_);
                    dx = ya' - y(it_, :);
                else
                    [ya,f,r,check]=lnsrch1(y,f,g,p,stpmax,fname,nn,y_index_eq, options.solve_tolx, x, ...
                                           params, steady_state,0);
                    dx = ya - y(y_index_eq);
                end
                if is_dynamic
                    y(it_,:) = ya';
                else
                    y = ya';
                end
            elseif ~is_dynamic && options.solve_algo==3
                if verbose==1
                    disp('steady: csolve')
                end
                [yn,info] = csolve(@local_fname, y(y_index_eq),@ ...
                                   local_fname,1e-6,500, x, params, steady_state, y, y_index_eq, fname, 1);
                dx = ya - yn;
                y(y_index_eq) = yn;
            elseif (stack_solve_algo==1 && is_dynamic) || (stack_solve_algo==0 && is_dynamic) || (~is_dynamic && (options.solve_algo==1 || options.solve_algo==6))
                if verbose==1 && ~is_dynamic
                    disp('steady: Sparse LU ')
                end
                dx =  g1\r;
                ya = ya - lambda*dx;
                if is_dynamic
                    y(it_,y_index_eq) = ya';
                else
                    y(y_index_eq) = ya;
                end
            elseif (stack_solve_algo==2 && is_dynamic) || (options.solve_algo==7 && ~is_dynamic)
                flag1=1;
                if isoctave
                    error('SOLVE_ONE_BOUNDARY: you can''t use solve_algo=7 since GMRES is not implemented in Octave')
                end
                if verbose == 1 && ~is_dynamic
                    disp('steady: GMRES ')
                end
                while flag1>0
                    [L1, U1]=ilu(g1,ilu_setup);
                    [dx,flag1] = gmres(g1,-r,Blck_size,1e-6,Blck_size,L1,U1);
                    if  flag1>0 || reduced
                        if verbose
                            if flag1==1
                                disp(['Error in simul: No convergence inside GMRES after ' num2str(iter,'%6d') ' iterations, in block' num2str(Block_Num,'%3d')])
                            elseif(flag1==2)
                                disp(['Error in simul: Preconditioner is ill-conditioned, in block' num2str(Block_Num,'%3d')])
                            elseif(flag1==3)
                                disp(['Error in simul: GMRES stagnated (Two consecutive iterates were the same.), in block' num2str(Block_Num,'%3d')])
                            end
                        end
                        ilu_setup.droptol = ilu_setup.droptol/10;
                        reduced = 0;
                    else
                        ya = ya + lambda*dx;
                        if is_dynamic
                            y(it_,y_index_eq) = ya';
                        else
                            y(y_index_eq) = ya';
                        end
                    end
                end
            elseif (stack_solve_algo==3 && is_dynamic) || (options.solve_algo==8 && ~is_dynamic)
                flag1=1;
                if verbose == 1 && ~is_dynamic
                    disp('steady: BiCGStab')
                end
                while flag1>0
                    [L1, U1]=ilu(g1,ilu_setup);
                    phat = ya - U1 \ (L1 \ r);
                    if is_dynamic
                        y(it_,y_index_eq) = phat;
                    else
                        y(y_index_eq) = phat;
                    end
                    if is_dynamic
                        [r, y, g1, g2, g3] = feval(fname, y, x, params, ...
                                                   steady_state, it_, 0);
                    else
                        [r, y, g1] = feval(fname, y, x, params);
                    end
                    if max(abs(r))>=options.solve_tolf
                        [dx,flag1] = bicgstab(g1,-r,1e-7,Blck_size,L1,U1);
                    else
                        flag1 = 0;
                        dx = phat - ya;
                    end
                    if flag1>0 || reduced
                        if verbose
                            if(flag1==1)
                                disp(['Error in simul: No convergence inside BICGSTAB after ' num2str(iter,'%6d') ' iterations, in block' num2str(Block_Num,'%3d')])
                            elseif(flag1==2)
                                disp(['Error in simul: Preconditioner is ill-conditioned, in block' num2str(Block_Num,'%3d')])
                            elseif(flag1==3)
                                disp(['Error in simul: GMRES stagnated (Two consecutive iterates were the same.), in block' num2str(Block_Num,'%3d')])
                            end
                        end
                        ilu_setup.droptol = ilu_setup.droptol/10;
                        reduced = 0;
                    else
                        ya = ya + lambda*dx;
                        if is_dynamic
                            y(it_,y_index_eq) = ya';
                        else
                            y(y_index_eq) = ya';
                        end
                    end
                end
            else
                if verbose
                    disp('unknown option : ')
                    if is_dynamic
                        disp(['options_.stack_solve_algo = ' num2str(stack_solve_algo) ' not implemented'])
                    else
                        disp(['options_.solve_algo = ' num2str(options.solve_algo) ' not implemented'])
                    end
                end
                info = -Block_Num*10;
                return
            end
            iter=iter+1;
            max_resa = max_res;
        end
    end
    if cvg==0
        if verbose
            if cutoff == 0
                fprintf('Error in simul: Convergence not achieved in block %d, at time %d, after %d iterations.\n Increase "options_.simul.maxit\".\n',Block_Num, it_,iter);
            else
                fprintf('Error in simul: Convergence not achieved in block %d, at time %d, after %d iterations.\n Increase "options_.simul.maxit" or set "cutoff=0" in model options.\n',Block_Num, it_,iter);
            end
        end
        if(is_dynamic)
            oo_.deterministic_simulation.status = 0;
            oo_.deterministic_simulation.error = max_res;
            oo_.deterministic_simulation.iterations = iter;
            oo_.deterministic_simulation.block(Block_Num).status = 0;% Convergency failed.
            oo_.deterministic_simulation.block(Block_Num).error = max_res;
            oo_.deterministic_simulation.block(Block_Num).iterations = iter;
        end
        info = -Block_Num*10;
        return
    end
end

if is_dynamic
    info = 1;
    oo_.deterministic_simulation.status = 1;
    oo_.deterministic_simulation.error = max_res;
    oo_.deterministic_simulation.iterations = iter;
    oo_.deterministic_simulation.block(Block_Num).status = 1;
    oo_.deterministic_simulation.block(Block_Num).error = max_res;
    oo_.deterministic_simulation.block(Block_Num).iterations = iter;
else
    info = 0;
end

function [err, G]=local_fname(yl, x, params, steady_state, y, y_index_eq, fname, is_csolve)
y(y_index_eq) = yl;
[err, y, G] = feval(fname, y, x, params, steady_state, 0);
if(is_csolve)
    G = full(G);
end