F.o.c

Dynare help (legacy posts)
1

How do you calculate First Order Condition? Manually? Can any package do this?Maybe Mathematica? lol.
Thx.

2

FOC are calculated by the Dynare preprocessor, which is a C++ program computing analytical derivatives of the model equations.

3

Actually, Dynare does not compute the FOCs (like e.g. the Euler equation). Dynare does the linearization of the FOCs by automatically computing the Taylor approximation, i.e. taking the required derivatives.

4

Thanks for correcting me.

Note that there is however one case where Dynare really computes the FOC: it is when using ramsey_policy.