Accuracy of numerical solutions using the Euler equation residuals.

This paper is concerned with asymptotic properties on the accuracy of numerical solutions. It is shown that the approximation error of the policy function is of the order of magnitude as the size of the Euler equation residuals. Moreover, for bounding this approximation error the most relevant par...

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Detalles Bibliográficos
Publicado en:Econometrica Vol. 68; no. 6; pp. 1377 - 1403
Autor principal: Santos, Manuel S.
Formato: Artículo
Publicado: Wiley-Blackwell November 2000
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: November 2000
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      pub: Wiley-Blackwell
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        atl: Accuracy of numerical solutions using the Euler equation residuals.
      aug:
        au: Santos, Manuel S.
      su:
        Euler theorem
        Error analysis in mathematics
        Approximation theory
      sug:
        subj:
          Euler theorem
          Error analysis in mathematics
          Approximation theory
      ab: This paper is concerned with asymptotic properties on the accuracy of numerical solutions. It is shown that the approximation error of the policy function is of the order of magnitude as the size of the Euler equation residuals. Moreover, for bounding this approximation error the most relevant parameters are the discount factor and the curvature of the return function. These findings provide theoretical foundations for the construction of tests to assess the performance of alternative computational methods. Reprinted by permission of the Econometric Society.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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