DMS/2 (Decisional Models Solution, version 2) is a computer package for solution of nonlinear econometric models. This technical report describes the new features that improve over the DMS-package.

Some analytic simulation techniques for the analysis of the reduced form and of the dynamic properties of econometric models are described. Comparisons are made with analytical methods available for linear models.

The estimator of the coefficient covariance matrix proposed in White (1982) can be used to robustify the classical Wald test. Sampling experiments recently performed on linear regressions and simultaneous equation models, however, suggest that such an estimator tends to underestimate the...

For some structural econometric models, the contribution of the off-diagonal blocks of the coefficients covariance matrix to the asymptotic standard errors of multipliers and forecasts is empirically evaluated.