First order taylor approximation

Stochastic simulations
1

Hi.

I know that by default in Dynare Taylor approximation order is 2 or order=2 in the
stoch_simul( ) command.

But when we work with linear DSGE models the order is 1

Is this right??

In other words in these situations
stoch_simul(order=1 )

2

Yes, that is correct.