Lower Bounds on Approximation Errors to Numerical Solutions of Dynamic Economic Models.

We propose a novel methodology for evaluating the accuracy of numerical solutions to dynamic economic models. It consists in constructing a lower bound on the size of approximation errors. A small lower bound on errors is a necessary condition for accuracy: If a lower error bound is unacceptably lar...

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Bibliographic Details

Published in:	Econometrica Vol. 85; no. 3; pp. 991 - 1013
Main Authors:	Judd, Kenneth L., Maliar, Lilia, Maliar, Serguei
Format:	Article
Published:	Wiley-Blackwell May2017
Subjects:	Economic models Errors Equations Approximation theory Chebyshev systems
Online Access:	View this record in EBSCOhost