Dynare forums

I am lost. I see how to interpret the policy functions. But what does numbers for transition function mean? Thanks for help. DYH

POLICY AND TRANSITION FUNCTIONS
c k lab u z
Constant 0.248035 2.687409 0.322600 0.116032 0
(correction) -0.000051 0.000123 0.000108 0.000022 0
k(-1) 0.025624 0.970291 -0.026165 -0.030054 0
z(-1) 0.208666 0.247720 0.218169 0.142278 0.980000
e 0.212924 0.252776 0.222621 0.145182 1.000000
k(-1),k(-1) -0.002612 0.001456 0.002975 0.008877 0
z(-1),k(-1) 0.010588 0.010349 0.025439 -0.027989 0
z(-1),z(-1) 0.106261 0.232614 -0.048892 0.062021 0
e,e 0.110642 0.242205 -0.050908 0.064578 0
k(-1),e 0.010804 0.010560 0.025958 -0.028560 0
z(-1),e 0.216859 0.474722 -0.099780 0.126574 0

What does the number mean starting from row 6? Thanks.

Hello jdyhuang

I don't know about the solution, but my reply is about the way you have posted. I think you might get quicker reply to your problem if you post the code in it's entirety and properly - for e.g.

Code: Select all

Here is my code.

Alternatively, you can post your code (and any related dataset as attachments.

Regards,

Ash

Numbers in row 6 and more are second order terms.

For example "k(-1),k(-1)" stands for the product k(-1)*k(-1).

See the reference manual:
http://www.dynare.org/manual/re26.html