# Optimal simple rule - which algorithm?

**URL:** <https://forum.dynare.org/t/optimal-simple-rule-which-algorithm/4305>\
**Category:** Dynare help (legacy posts)\
**Created:** [19 November 2014 06:35 UTC](https://forum.dynare.org/t/optimal-simple-rule-which-algorithm/4305 "2014-11-19T06:35:49Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![flumas22](https://forum.dynare.org/letter_avatar_proxy/v4/letter/f/8797f3/32.png) [@flumas22](https://forum.dynare.org/u/flumas22)\
**Post date:** [19 November 2014 06:35 UTC](https://forum.dynare.org/t/optimal-simple-rule-which-algorithm/4305/1 "2014-11-19T06:35:49Z")

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Dear all,

which alghoritm is used to compute optimal simple rules in Dynare?

Is that of Dennis, R. (2004): Solving for optimal simplerule s in rational expectations models???

Thank you.

Jan

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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:** [6 December 2014 10:49 UTC](https://forum.dynare.org/t/optimal-simple-rule-which-algorithm/4305/2 "2014-12-06T10:49:19Z")

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Not exactly. The algorithm is documented in detail in the manual. It differs from the ones in Dennis (2004) as the objective function is different. Dennis uses a discounted sum of squares while Dynare does use the unconditional expectations.