# Basu\_Bundick\_2017

**URL:** <https://forum.dynare.org/t/basu-bundick-2017/13437>\
**Category:** Stochastic simulations\
**Created:** [20 March 2019 01:40 UTC](https://forum.dynare.org/t/basu-bundick-2017/13437 "2019-03-20T01:40:36Z")\
**Posts on this page:** 1\
**Showing post:** 2

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**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\
**Post date:** [20 March 2019 19:51 UTC](https://forum.dynare.org/t/basu-bundick-2017/13437/2 "2019-03-20T19:51:58Z")

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1. No, the approximation point for perturbation is still the deterministic steady state.
2. At third order, you get a term g\_{x\sigma\sigma} (in SGU (2004) notation) that affects the eigenvalues of the solution. But under pruning, you prevent this term from affecting the eigenvalues. That can change the persistence of the system.

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