Higher-Order Perturbation Solutions to Dynamic, Discrete-Time Rational Expectations Models: Methods and an Application to Optimal Monetary Policy

We present an algorithm and software routines for computing nth-order approximate solutions to dynamic, discrete-time rational expectations models around a nonstochastic steady state. We apply these routines to investigate the optimal monetary policy with commitment in an optimizing-agent model with nominal price rigidities, subject to a fiscal policy that is stochastic, suboptimal, and exogenous to the central bank

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Year of publication:	2005-11-11
Authors:	Swanson, Eric ; Anderson, Gary ; Levin, Andrew
Institutions:	Society for Computational Economics - SCE
Subject:	perturbation methods \| Mathematica \| nth order \| optimal monetary policy

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Series:	Computing in Economics and Finance 2005.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series Computing in Economics and Finance 2005 Number 146
Classification:	C61 - Optimization Techniques; Programming Models; Dynamic Analysis ; C63 - Computational Techniques ; E37 - Forecasting and Simulation
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005343047