estimation of third order approximation
Posted: Wed Oct 29, 2014 6:54 am
Hi
I just wanted to ask if dynare is able to estimate (and also make a historical decomposition of shocks) a model which has a third-order approximation ? This third order is needed to generate time variant term premia of financial assets.
Many Thanks
I just wanted to ask if dynare is able to estimate (and also make a historical decomposition of shocks) a model which has a third-order approximation ? This third order is needed to generate time variant term premia of financial assets.
Many Thanks