The first version was posted 7/29/00. 12/30/00 10AM: There were two serious errors in the order2guts.m code that were detected via Jinill Kim and Sunghyun Kim independently obtaining a second-order solution to the sessionEG.m example. Those bugs are now fixed, and the fact that results match for for two independent solutions on a non-trivial single-state example suggests that the code is reliable for single-state models. It is not thoroughly tested for multi-state models, however, so users are cautioned. Anyone who finds anomalies, particularly anyone who finds results from gensys2.m conflicting with results obtained independently, should let me (sims@princeton.edu) know. 10/8 10:18PM: Previous fix of the "pick" bug was incorrect. Now it is fixed to the extent that it gives correct answers in the analytically solvable version of the one-sector growth model. 9/29 9:50PM: Significant bug in gensys2.m, pointed out by Jinill Kim, corrected. The bug made results using a "pick" matrix incorrect. 8/31/00 4PM: Clarifying changes to the comments in gensys2.m . Again no change in the code itself. 7/30/00 7:45PM: Another error in the comments to gensys2.m fixed. Again no change in the code itself. 7/30/00 7:45PM: Another error in the comments to gensys2.m fixed. Again no change in the code itself. An error in handling dimensions that makes the program stop when the number of states and number of shocks is different was corrected in the version of order2guts.m posted 7/30/00, 1:30PM. An error in the comments to gensys2.m that made matlab help give the wrong calling sequence was corrected in the version posted 7/30/00, 1:30PM.