Gains from second-order approximations

The benefit from using second-order approximations tostochastic dynamic rational expec- tations models is explained. By example of the neoclassical growth model, this note as- sesses the accuracy of the obtained approximation. The implications for optimal policy are discussed.

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Year of publication:	2003-11
Authors:	Paustian, Matthias
Institutions:	University of Bonn, Germany
Subject:	Second-order approximation \| accuracy \| optimalpolicy

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Extent:	application/pdf
Series:	Bonn Econ Discussion Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	1 pages long
Classification:	E0 - Macroeconomics and Monetary Economics. General ; C63 - Computational Techniques
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10004968411