This paper applies nonlinear projection methods to solve Ramsey problems in a stochastic monetary economy. The presence of nonlinear distortions in the Ramsey problem requires the use of a solution procedure which captures these effects. The nonlinear projection method, even with low-order...

This paper uses contingent claims analysis to evaluate the implicit government guarantee to Fannie Mae and Freddie Mac prior to their placement into conservatorship. The main findings of the paper indicate that the expected value of the guarantee was in line with the size of capital injections...

In this paper, an analytic approach is applied to approximate stochastic differential utility for both endowment and production economies. This utility function satisfies a second order nonlinear differential equation and is analytic near the stationary mean of the state variable. The radius of...

This paper applies nonlinear projection methods to solve Ramsey problems in a stochastic monetary economy. The presence of nonlinear distortions in the Ramsey problem requires the use of a solution procedure which captures these effects. The nonlinear projection method, even with low-order...

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