@@ -698,13 +698,16 @@ and the processing instructions, as described in @ref{The Model file}.
@code{dynare} begins by launching the preprocessor on the @file{.mod}
file. By default (unless @code{use_dll} option has been given to
@code{model}), the preprocessor creates three intermediary files:
@code{model}), the preprocessor creates four intermediary files:
@table @file
@item @var{FILENAME}.m
Contains variable declarations, and computing tasks
@item @var{FILENAME}_M_.m
Defines the model structure
@item @var{FILENAME}_dynamic.m
@vindex M_.lead_lag_incidence
Contains the dynamic model equations. Note that Dynare might introduce auxiliary equations and variables (@pxref{Auxiliary variables}). Outputs are the residuals of the dynamic model equations in the order the equations were declared and the Jacobian of the dynamic model equations. For higher order approximations also the Hessian and the third-order derivatives are provided. When computing the Jacobian of the dynamic model, the order of the endogenous variables in the columns is stored in @code{M_.lead_lag_incidence}. The rows of this matrix represent time periods: the first row denotes a lagged (time t-1) variable, the second row a contemporaneous (time t) variable, and the third row a leaded (time t+1) variable. The columns of the matrix represent the endogenous variables in their order of declaration. A zero in the matrix means that this endogenous does not appear in the model in this time period. The value in the @code{M_.lead_lag_incidence} matrix corresponds to the column of that variable in the Jacobian of the dynamic model. Example: Let the second declared variable be @code{c} and the @code{(3,2)} entry of @code{M_.lead_lag_incidence} be @code{15}. Then the @code{15}th column of the Jacobian is the derivative with respect to @code{y(+1)}.