# Converting the covariance matrix in DYNARE from logs to levels

**URL:** https://forum.dynare.org/t/converting-the-covariance-matrix-in-dynare-from-logs-to-levels/12128
**Category:** Stochastic simulations
**Created:** [18 July 2018 16:44 UTC](https://forum.dynare.org/t/converting-the-covariance-matrix-in-dynare-from-logs-to-levels/12128 "2018-07-18T16:44:34Z")
**Posts on this page:** 1
**Showing post:** 4

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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: [22 July 2018 01:05 UTC](https://forum.dynare.org/t/converting-the-covariance-matrix-in-dynare-from-logs-to-levels/12128/4 "2018-07-22T01:05:58Z")

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I would go for option 3. Take your mod-file in log-deviations and define an auxiliary variable  
`y_level=exp(y)`  
and work with this. See also [Question about understanding irfs in dynare](https://forum.dynare.org/t/question-about-understanding-irfs-in-dynare/10622/4)

Sidenote: I do not understand your approach 2. If you want level deviations, you are interested in x\_t-x, not \frac{x\_t-x}{x}.

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