diff --git a/doc/manual/source/the-model-file.rst b/doc/manual/source/the-model-file.rst index 1bc92ac45166fabfc928f7c8ad1b674d9e969b4f..0a7b912ed18f7048707e5ce4fdbd44e8ba588dbc 100644 --- a/doc/manual/source/the-model-file.rst +++ b/doc/manual/source/the-model-file.rst @@ -8127,30 +8127,25 @@ Optimal policy ============== Dynare has tools to compute optimal policies for various types of -objectives. ``ramsey_model`` computes automatically the First Order -Conditions (FOC) of a model, given the ``planner_objective``. You can -then use other standard commands to solve, estimate or simulate this -new, expanded model. - -Alternatively, you can either solve for optimal policy under -commitment with ``ramsey_policy``, for optimal policy under discretion -with ``discretionary_policy`` or for optimal simple rule with ``osr`` +objectives. You can either solve for optimal policy under +commitment with ``ramsey_model``, for optimal policy under discretion +with ``discretionary_policy`` or for optimal simple rules with ``osr`` (also implying commitment). .. command:: planner_objective MODEL_EXPRESSION ; |br| This command declares the policy maker objective, for use - with ``ramsey_policy`` or ``discretionary_policy``. + with ``ramsey_model`` or ``discretionary_policy``. You need to give the one-period objective, not the discounted lifetime objective. The discount factor is given by the - ``planner_discount`` option of ``ramsey_policy`` and + ``planner_discount`` option of ``ramsey_model`` and ``discretionary_policy``. The objective function can only contain current endogenous variables and no exogenous ones. This limitation is easily circumvented by defining an appropriate auxiliary variable in the model. - With ``ramsey_policy``, you are not limited to quadratic + With ``ramsey_model``, you are not limited to quadratic objectives: you can give any arbitrary nonlinear expression. With ``discretionary_policy``, the objective function must be quadratic. @@ -8354,7 +8349,7 @@ Optimal policy under discretion *Options* - This command accepts the same options than ``ramsey_policy``, plus: + This command accepts the same options as ``ramsey_policy``, plus: .. option:: discretionary_tol = NON-NEGATIVE DOUBLE