Linear-quadratic solution methods to non-linear stochastic models: a note.
The writer describes and compares linear-quadratic solution methods to nonlinear stochastic rational expectations models using a closed economy real business cycle model as an illustration. He demonstrates that all methods yield identical coefficients in the optimal decision rules. However, he not...
| Publicado en: | Manchester School (14636786) Vol. 66; no. 1; pp. 118 - 128 |
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| Formato: | Artículo |
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Wiley-Blackwell
January 1998
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| Acceso en línea: | Ver este registro en EBSCOhost |
| Sumario: | The writer describes and compares linear-quadratic solution methods to nonlinear stochastic rational expectations models using a closed economy real business cycle model as an illustration. He demonstrates that all methods yield identical coefficients in the optimal decision rules. However, he notes that, when solving other models, some methods need only a few alterations to existing computer programs. |
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