Hello Pfeifer ,
I am trying to do 3rd order perturbation on Schmitt-Grohe and Uribe (2003), closing devices by using your dynare codes. I have basic level of clarification.
on this link “Time varying volatility” you mentioned that “You need to enter a fully nonlinear model and in stoch_simul you must put order=3.” My question is, do I need to remove all exp() on the model before applying 3rd perturbation. What about steady state? do I need to remove log as well.
Thanks in Advance,