Solving Dynamic General Equilibrium Models Using a Second-Order Approximation to the Policy Function

Stephanie Schmitt-Grohé () and Martín Uribe

Departmental Working Papers from Rutgers University, Department of Economics

Abstract: This paper derives a second-order approximation to the solution of rational expectations, dynamic, general equilibrium models. To illustrate its applicability, the method is used to solve the dynamics of a simple neoclassical model. The paper closes with a brief description of a set of MATLAB programs designed to implement the method.

Keywords: Perturbation Method; Second Order Approximation; Solving Dynamic General Equilibrium Models (search for similar items in EconPapers)
JEL-codes: C63 E0 (search for similar items in EconPapers)
Date: 2001-07-24
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (57) Track citations by RSS feed

Downloads: (external link)
ftp://snde.rutgers.edu/Rutgers/wp/2001-06.pdf (application/pdf)

Related works:
Journal Article: Solving dynamic general equilibrium models using a second-order approximation to the policy function (2004)
Working Paper: Solving Dynamic General Equilibrium Models Using a Second-Order Approximation to the Policy Function (2002)
Working Paper: Solving Dynamic General Equilibrium Models Using a Second-Order Approximation to the Policy Function (2001)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:rut:rutres:200106

Access Statistics for this paper

More papers in Departmental Working Papers from Rutgers University, Department of Economics
Contact information at EDIRC.
Series data maintained by ().