# Oo\_.planner\_objective\_value

**URL:** <https://forum.dynare.org/t/oo-planner-objective-value/5518>\
**Category:** Optimal Policy\
**Created:** [18 May 2016 10:36 UTC](https://forum.dynare.org/t/oo-planner-objective-value/5518 "2016-05-18T10:36:50Z")\
**Posts on this page:** 1\
**Showing post:** 5

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**Author:** ![MichelJuillard](https://forum.dynare.org/user_avatar/forum.dynare.org/micheljuillard/32/5318_2.png) [@MichelJuillard](https://forum.dynare.org/u/MichelJuillard)\
**Post date:** [12 June 2016 18:21 UTC](https://forum.dynare.org/t/oo-planner-objective-value/5518/5 "2016-06-12T18:21:12Z")

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Hi Ippei,

in your previous post, there shouldn’t be any u(t) because u(t) is observed at the beginning of the period and belongs by assumption to the information set of E\_t()

If you want the unconditional welfare (a tricky concept), you could do the following

1. include utility = u(y\_t), the period utility function, among the variable/equation of the model. This doesn’t generate the same problem as adding the definition of welfare.
2. then you can compute E(W\_t) = E(u(y(t)) + \beta E(W\_{t+1}) as  
E(W\_t)= E(u(y\_t))/(1-\beta) because E() being unconditional expectation, E(W\_t) = E(W\_{t+1}) and you can read E(u(y\_t)) as the second order approximation to the mean of u
3. In order to get the second order approximation of the model under Ramsey, you must indicate  
ramsey\_model(planner\_discount\_factor=…);  
stoch\_simul(order=2);

Hope it helps

Michel

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