# Second order approximation and the IRF explosive

**URL:** <https://forum.dynare.org/t/second-order-approximation-and-the-irf-explosive/11515>\
**Category:** Optimal Policy\
**Created:** [21 March 2018 14:10 UTC](https://forum.dynare.org/t/second-order-approximation-and-the-irf-explosive/11515 "2018-03-21T14:10:46Z")\
**Posts on this page:** 1\
**Showing post:** 3

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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:** [22 March 2018 19:23 UTC](https://forum.dynare.org/t/second-order-approximation-and-the-irf-explosive/11515/3 "2018-03-22T19:23:03Z")

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1. You should reduce your shock size. `0.1` mean 10 percent.
2. Use theoretical moments for welfare evaluation
3. For a grid search, follow e.g. [Policy frontier](https://forum.dynare.org/t/policy-frontier/5910) and the general discussion at [Loop over parameters](https://forum.dynare.org/t/loop-over-parameters/3335)

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