Third order approximation


Would anyone explain how the third order approximation is organized in Dynare? What each element in g3 means?
Thanks in advance!

Hi there,

g_0, g_1, g_2 and g_3 are the derivatives of the decision rule divided by the Taylor coefficient (1/k!) where k is the order of the derivative. Symmetric derivatives are stored only once in the order of a multidimensional index going thru the state variables of the model and the shocks in their order of declaration.
This is the same storage scheme as Dynare++ (See … torial.pdf, page 24, dyn_g_order).