Parametric Path Method: An alternative to Fair-Taylor and L-B-J for solving perfect foresight models

The parametric path method applies projection methods to compute the equilibrium path of economic variables in infinite-horizon dynamic models. We exploit the special structure of economic time paths common in such models. This structure drastically reduces dimensionality and reduces computing time. We apply the parametric method to a simple example which illustrates how one applies the ideas to produce an efficient implementation.

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Year of publication:	2001-04-01
Authors:	Judd, Kenneth L.
Institutions:	Society for Computational Economics - SCE
Subject:	dynamic models \| projection methods

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Series:	Computing in Economics and Finance 2001.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series Computing in Economics and Finance 2001 Number 112
Classification:	C63 - Computational Techniques
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005706721