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Third order

PostPosted: Sat Apr 28, 2012 9:22 pm
by rheresi
Hello.

I have a question about dynare reference manual, version 4.2.4, page 37.

In the third order approx. description of G2 matrix says: "...Also note that for those pairs where i1~=i2, since the element is stored only once but appears two times in the unfolded G2 matrix, it must be multiplied by 2 when computing the decision rules."

Is the G2 matrix provided by dynare already multiplied by 2, or do I have to do it?

I really appreciate your help.
Best
Rodrigo