problem with second-order approximation

This forum is closed. You can read the posts but cannot write. We have migrated the forum to a new location where you will have to reset your password.
Forum rules
This forum is closed. You can read the posts but cannot write. We have migrated the forum to a new location (https://forum.dynare.org) where you will have to reset your password.

problem with second-order approximation

Postby ahuca2008 » 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.
ahuca2008
 
Posts: 11
Joined: Thu Apr 18, 2013 8:50 am

Re: problem with second-order approximation

Postby jpfeifer » Wed Mar 04, 2015 2:00 pm

Exactly, you use orer=2 and you have to enter the model nonlinearly. If you enter it linearly, there is no point in going to second order.
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
jpfeifer
 
Posts: 6940
Joined: Sun Feb 21, 2010 4:02 pm
Location: Cologne, Germany

Re: problem with second-order approximation

Postby ahuca2008 » Wed Mar 04, 2015 4:35 pm

Dear jpfeifer,
Thanks for your helping.When I use a second-order approximation to solve the model , where should the model solution be store in dynare? In this case , should the solution equal to the model steady state value?
ahuca2008
 
Posts: 11
Joined: Thu Apr 18, 2013 8:50 am

Re: problem with second-order approximation

Postby jpfeifer » Thu Mar 05, 2015 10:32 am

Depends on what you are looking for. The saving of results is documented in the manual.
------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
jpfeifer
 
Posts: 6940
Joined: Sun Feb 21, 2010 4:02 pm
Location: Cologne, Germany


Return to Dynare help

Who is online

Users browsing this forum: Google [Bot] and 7 guests