Approximation Errors of Perturbation Methods in Solving a Class of Dynamic Stochastic General Equilibrium Models

We establish the standard procedures in solving a class of dynamic stochastic general equilibrium models with a second-order approximation to the policy function. The innovation is that the means of exogenous shocks vary with the variances. The numerical results show that second-order perturbation methods generate large approximation errors regarding the responses of policy functions to shocks

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Year of publication:	2013
Authors:	Liu, Xuan
Other Persons:	Cui, Zhiwei (contributor)
Publisher:	[2013]: [S.l.] : SSRN
Subject:	Dynamisches Gleichgewicht \| Dynamic equilibrium \| Stochastischer Prozess \| Stochastic process \| Theorie \| Theory \| DSGE-Modell \| DSGE model
Description of contents:	Abstract [papers.ssrn.com]

Extent:	1 Online-Ressource
Type of publication:	Book / Working Paper
Language:	English
Notes:	In: Computational Economics, Vol. 38(2), 107-128 Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 9, 2012 erstellt Volltext nicht verfügbar
Classification:	C61 - Optimization Techniques; Programming Models; Dynamic Analysis ; C63 - Computational Techniques ; C68 - Computable General Equilibrium Models ; E32 - Business Fluctuations; Cycles ; E61 - Policy Objectives; Policy Designs and Consistency; Policy Coordination
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013091188