TAYLOR PROJECTION: A NEW SOLUTION METHOD FOR DYNAMIC GENERAL EQUILIBRIUM MODELS.

Abstract: This article presents a new solution method for dynamic equilibrium models. The solution is approximated by polynomials that zero the residual function and its derivatives at a given point x. The algorithm is essentially a type of projection but is significantly faster, since the problem i...

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Publicado en:International Economic Review Vol. 59; no. 3; pp. 1345 - 1374
Autor principal: Levintal, Oren
Formato: Artículo
Publicado: Wiley-Blackwell Aug2018
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Aug2018
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      pub: Wiley-Blackwell
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        10.1111/iere.12306
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        atl: TAYLOR PROJECTION: A NEW SOLUTION METHOD FOR DYNAMIC GENERAL EQUILIBRIUM MODELS.
      aug:
        au: Levintal, Oren
        affil: Interdisciplinary Center (IDC) Herzliya, Israel
      su:
        Economic equilibrium
        Mathematical models
        Polynomials
        Derivatives (Mathematics)
        Algorithms
        Newton-Raphson method
        State-space methods
      sug:
        subj:
          Economic equilibrium
          Mathematical models
          Polynomials
          Derivatives (Mathematics)
          Algorithms
          Newton-Raphson method
          State-space methods
      ab: Abstract: This article presents a new solution method for dynamic equilibrium models. The solution is approximated by polynomials that zero the residual function and its derivatives at a given point x. The algorithm is essentially a type of projection but is significantly faster, since the problem is highly sparse and can be easily solved by a Newton solver. The obtained solution is accurate locally in the neighborhood of x. Importantly, a local solution can be obtained at any point of the state space. This makes it possible to solve models at points that are further away from the steady state.
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      doctype: Article
      src: R
    language: English
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