Second order approximation Schmitt-Grohe, Uribe (2004)

[bayes]

Hi! I would like to use the second-order approximation to solve the model and then evaluate welfare using this solution as in Schmitt-Grohe and Uribe (2004). Are there Dynare codes available that replicate results of this paper? I found this page - http://www.dynare.org/DynareWiki/OrderTwo , however, both mod-files there don't function.
I've never done welfare evaluation in Dynare and now not sure how I should proceed..

[jpfeifer]

Please be more precise. Which Schmitt-Grohé/Uribe (2004)-paper are you talking about? They have been immensely productive and it's impossible to identify papers just by the year.

[bayes]

I was referring to the paper "Optimal Simple and Implementable Monetary and Fiscal rules" http://www.columbia.edu/~mu2166/optimal ... panded.pdf

I want to calculate conditional welfare measure - conditional on the initial state being the non stochasic steady state. How could I do this in Dynare in the same way as it is done in the paper I attached, for example.
Should I then, first, do second order approximation and calculate conditional welfare as welfare = utility + beta*welfare(+1)?
If my model is in log-deviations from steadystate, then I would calculate welfare deviations from steady state?

My goal is to compare conditional welfare under different policy rules. Could you please give me some advice on this issue?

[jpfeifer]

This paper is on my replication list, but still months away. For now, I can only refer you to http://www.dynare.org/phpBB3/viewtopic.php?f=2&t=5495