diff --git a/doc/manual/source/the-model-file.rst b/doc/manual/source/the-model-file.rst index 817990cc4..6fdcac9ff 100644 --- a/doc/manual/source/the-model-file.rst +++ b/doc/manual/source/the-model-file.rst @@ -4619,9 +4619,9 @@ Computing the stochastic solution Discard higher order terms when iteratively computing simulations of the solution. At second order, Dynare uses the algorithm of *Kim, Kim, Schaumburg and Sims (2008)*, while at - third order its generalization by *Andreasen, + third order and higher its generalization by *Andreasen, Fernández-Villaverde and Rubio-Ramírez (2018)* is used. - Not available above third order. When specified, theoretical moments + When specified, theoretical moments are based on the pruned state space, i.e. the computation of second moments uses all terms as in *Andreasen, Fernández-Villaverde and Rubio-Ramírez (2018), page 10* as opposed to simply providing a second-order accurate result based on the