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Persistent link: https://www.econbiz.de/10000972454
In this paper we present a method for using rational expectations in a linear-quadratic optimizationframework. Following the approach put forward by Sims, we solve the model through a QZdecomposition, which is generally easier to implement than the more widely used method of Blanchardand Kahn.
Persistent link: https://www.econbiz.de/10010361657
Persistent link: https://www.econbiz.de/10000151684