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Posted: **Sun Jul 17, 2011 3:50 pm**

What does the (correction) mean in the output?

POLICY AND TRANSITION FUNCTIONS
c
Constant -0.178268
(correction) 0.000028
k(-1) 0.804421

Posted: **Mon Jul 18, 2011 12:28 pm**

Using the notations of section 4.13.4 in Dynare's manual (about second order approximation)... The constant is equal to y^s+.5*\Delta^2 and the correction is .5*\Delta^2. Put differently, the constant minus the correction is equal to the deterministic steady state.

Best, Stéphane.

Dynare forums

What does the (correction) mean in the output?

What does the (correction) mean in the output?

Re: What does the (correction) mean in the output?