problem with second-order approximation
Posted: Wed Mar 04, 2015 1:01 pm
Dear all,
I want to solve a linear DSGE model with a second-order approximation ,but I don't know how to do it in dynare.should I use the code"stoch_simul(order=2)"?When I use the second-order approximation, the model must be non-linear?
Thanks you for your time.
I want to solve a linear DSGE model with a second-order approximation ,but I don't know how to do it in dynare.should I use the code"stoch_simul(order=2)"?When I use the second-order approximation, the model must be non-linear?
Thanks you for your time.