Hi,

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

Thanks in advance!

Hi,

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 dynare.org/documentation-and … torial.pdf, page 24, dyn_g_order).

Best

Michel