convergence and accuracy properties of the simulated moments. Our purpose is to provide an asymptotic theory for the computation …, simulation-based estimation, and testing of dynamic economies. The theoretical analysis is complemented with several illustrative …

This chapter is concerned with numerical simulation of dynamic economic models. We focus on some basic algorithms and … study their accuracy and stability properties. This analysis is useful for an optimal implementation and testing of these …

We propose a novel methodology for evaluating the accuracy of numerical solutions to dynamic economic models … condition for accuracy: If a lower error bound is unacceptably large, then the actual approximation errors are even larger, and … hence, we reject the hypothesis that a numerical solution is accurate. Our accuracy analysis is logically equivalent to …