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...

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Publicado en:Manchester School (14636786) Vol. 66; no. 1; pp. 118 - 128
Autor principal: Roche, Maurice J.
Formato: Artículo
Publicado: Wiley-Blackwell January 1998
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Linear-quadratic solution methods to non-linear stochastic models: a note.
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        au: Roche, Maurice J.
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        Stochastic processes
        Mathematical models of business cycles
        Rational expectations (Economic theory)
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        subj:
          Stochastic processes
          Mathematical models of business cycles
          Rational expectations (Economic theory)
      ab: 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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