A Note on the Accuracy of Extended-Path Solution Methods for Dynamic General Equilibrium Economies.

We show that the deterministic Extended-Path (EP) method of Fair and Taylor (1983) solves standard dynamic stochastic general equilibrium models with similar accuracy to the best results reported in the literature for alternative methods. The EP method demands more computer time than other methods but has offsetting benefits in terms of simplicity and generality that make it an attractive choice.

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Year of publication:	2008-04
Authors:	Love, David R.F.
Institutions:	Department of Economics, Brock University
Subject:	Dynamic stochastic equilibrium \| computational methods \| non-linear solutions

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	Number 0801 13 pages
Classification:	E10 - General Aggregative Models. General ; E30 - Prices, Business Fluctuations, and Cycles. General ; E37 - Forecasting and Simulation
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005168869