Oo_.dr.g_0

Dynare help (legacy posts)
1

Hi, I’m wondering why oo_.dr.g_0 isn’t always just equal to zero if we linearize around the steady state?

2

oo_.dr.g_o is created in a third-order approximation (see p. 41 of the Reference Manual, version 4.2.2) and contains uncertainty corrections to the constant terms.

For a linear approximation, make sure to set the option order=1, for example:
stoch_simul(order=1,…)