expectation (CTE) under the condition of second order regular variation (2RV). First, the closed-form second order approximation … approximation is affected by only the regular variation index −α of marginal survivor functions, while the second order … approximation is influenced by both the parameters for first and second order regular variation, and the rate of convergence to the …

Several approaches to finding the second-order approximation to a dynamic model have been proposed recently. This paper …

This paper provides first and second-order approximation methods for the solution of non-linear dynamic stochastic … second-order approximation of the solution, instead, is sufficient to get this role. Moreover, risk premia, evaluated using …

illustration, the method is used to derive a full second-order approximation for aggregate utility in a sticky price model. In an …

policies, but is shown to be quantitatively significant in a second order approximation, especially when technology movements …

This paper derives a second-order approximation to the solution of rational expectations, dynamic, general equilibrium …

equilibrium, the second-order approximation method performs satisfactorily; however, on larger regions, dynamic programming …