# Comparing welfare - Ramsey vs Taylor rule

**URL:** <https://forum.dynare.org/t/comparing-welfare-ramsey-vs-taylor-rule/6191>\
**Category:** Optimal Policy\
**Created:** [5 May 2017 20:49 UTC](https://forum.dynare.org/t/comparing-welfare-ramsey-vs-taylor-rule/6191 "2017-05-05T20:49:35Z")\
**Posts on this page:** 1\
**Showing post:** 7

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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:** [2 March 2020 10:05 UTC](https://forum.dynare.org/t/comparing-welfare-ramsey-vs-taylor-rule/6191/7 "2020-03-02T10:05:42Z")

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This is unfortunately complicated. The two are not immediately comparable. One issue is the information set, i.e. how you treat first period shocks. See the open ticket at [https://git.dynare.org/Dynare/dynare/issues/1045](https://git.dynare.org/Dynare/dynare/issues/1045) and [Oo\_.planner\_objective\_value](https://forum.dynare.org/t/oo-planner-objective-value/5518)

The second issue is the approximation order. See the open ticket at [https://git.dynare.org/Dynare/dynare/issues/1680](https://git.dynare.org/Dynare/dynare/issues/1680)

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