An OLS approach to computing Ramsey equilibria in medium-scale macroeconomic models

This note describes a general procedure for solving for the steady state and the dynamics implied by the Ramsey equilibrium of medium-scale macroeconomic models. The procedure yields an exact numerical solution for the steady state and second-order accurate dynamics. It introduces a novel projection-based approach to calculating exact solutions to the steady state of Ramsey equilibria.

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Year of publication:	2012
Authors:	Schmitt-Grohé, Stephanie ; Uribe, Martín
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 115.2012, 1, p. 128-129
Publisher:	Elsevier
Subject:	Computing Ramsey steady states \| Medium-scale DSGE models \| Approximation welfare

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Type of publication:	Article
Classification:	E6 - Macroeconomic Policy Formation, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook ; C6 - Mathematical Methods and Programming
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011041828