# Third order solution with skewed shocks

**URL:** <https://forum.dynare.org/t/third-order-solution-with-skewed-shocks/28306>\
**Category:** Semistructural Modeling\
**Created:** [12 March 2026 14:15 UTC](https://forum.dynare.org/t/third-order-solution-with-skewed-shocks/28306 "2026-03-12T14:15:52Z")\
**Posts on this page:** 5\
**Page:** 1

<div class="post-metadata">

**Author:** ![lombard](https://forum.dynare.org/letter_avatar_proxy/v4/letter/l/ecb155/32.png) [@lombard](https://forum.dynare.org/u/lombard)\
**Post date:** [12 March 2026 14:15 UTC](https://forum.dynare.org/t/third-order-solution-with-skewed-shocks/28306/1 "2026-03-12T14:15:52Z")

</div>

Hi,  
I’m trying to study an economy subject to a skewed-normal shock using the “unstable-8” version of Dynare (with skew e=-0.99 in the shocks block).  
It occurred to me that there is not equivalent of ghs2 (a ghs3) for the shift due to skewed innovations.  
It seems to me that it is not embedded in g\_0 either. Skewed innovations would in general imply an additional shifter.  
Am I looking in the wrong places?  
Thanks and best,  
Gianni

---

<div class="post-metadata">

**Author:** ![wmutschl](https://forum.dynare.org/user_avatar/forum.dynare.org/wmutschl/32/18464_2.png) [@wmutschl](https://forum.dynare.org/u/wmutschl)\
**Post date:** [26 March 2026 08:51 UTC](https://forum.dynare.org/t/third-order-solution-with-skewed-shocks/28306/2 "2026-03-26T08:51:12Z")

</div>

Indeed, the perturbation solver does not take into account asymmetric shocks, so you need to compute these matrices by hand as I have done here:

> **[DSGE\_mod/Andreasen\_2012 at master · JohannesPfeifer/DSGE\_mod](https://github.com/JohannesPfeifer/DSGE_mod/tree/master/Andreasen_2012)**
>
> A collection of Dynare models. Contribute to JohannesPfeifer/DSGE\_mod development by creating an account on GitHub.

At first and second order this is not a problem, but at third and higher orders this is not correct. At some point we will tackle this in Dynare, but it is not a high priority.

---

<div class="post-metadata">

**Author:** ![lombard](https://forum.dynare.org/letter_avatar_proxy/v4/letter/l/ecb155/32.png) [@lombard](https://forum.dynare.org/u/lombard)\
**Post date:** [26 March 2026 10:58 UTC](https://forum.dynare.org/t/third-order-solution-with-skewed-shocks/28306/3 "2026-03-26T10:58:48Z")

</div>

Dear Willi,

many thanks for your response.  
Best,  
Gianni

---

<div class="post-metadata">

**Author:** ![lombard](https://forum.dynare.org/letter_avatar_proxy/v4/letter/l/ecb155/32.png) [@lombard](https://forum.dynare.org/u/lombard)\
**Post date:** [28 April 2026 12:22 UTC](https://forum.dynare.org/t/third-order-solution-with-skewed-shocks/28306/4 "2026-04-28T12:22:52Z")

</div>

Hi,  
I’ve forked Dynare and let codex fix the bug (giannilmbd/dynare).

Now if you add skewness, it returns the correct stochastic steady state (ghs3 and g\_0).  
I’ve tested it with a made-up process

```auto
v = e1^2;
u = e1^3;
y = v(+1) + u(+1);
junk = rho*junk(-1);

```

It seems to be working.  
Best,  
Gianni

---

<div class="post-metadata">

**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:** [28 April 2026 15:40 UTC](https://forum.dynare.org/t/third-order-solution-with-skewed-shocks/28306/5 "2026-04-28T15:40:28Z")

</div>

Thank you very much. This is a good start. I opened a ticket at [Account for skewness in higher order decision rules (#2029) · Issues · Dynare / dynare · GitLab](https://git.dynare.org/Dynare/dynare/-/work_items/2029).