Feng, Zhigang; Miao, Jianjun; Peralta-Alva, Adrian; … - Federal Reserve Bank of St. Louis - 2009
endogenous
variables x and vector of exogenous shocks z. Vector x belongs to a compact domain X and contains
all predetermined … the dynamics of the state vector x is conformed by a system of non-linear
equations:
ϕ(x
t+1
,x
t
,y
t
,z
t
)=0. (2 … models analyzed in Section 4, function ϕ isknownandwecanexplicitly
solve for x
t+1
as a function of (x
t
,y
t
,z
t
). In …