Solving Dynamic General Equilibrium Models Using a Second-Order Approximation to the Policy Function

This paper derives a second-order approximation to the solution of rational expectations, dynamic, general equilibrium models. To illustrate its applicability, the method is used to solve the dynamics of a simple neoclassical model. The paper closes with a brief description of a set of MATLAB programs designed to implement the method.

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Year of publication:	2001-07-24
Authors:	Schmitt-Grohe, Stephanie ; Uribe, Martin
Institutions:	Department of Economics, Rutgers University-New Brunswick
Subject:	Perturbation Method \| Second Order Approximation \| Solving Dynamic General Equilibrium Models

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Extent:	application/pdf
Series:	Departmental Working Papers.
Type of publication:	Book / Working Paper
Classification:	C63 - Computational Techniques ; E0 - Macroeconomics and Monetary Economics. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005746188