EconPapers    
Economics at your fingertips  
 

Comparing Solution Methods for DSGE Models with Labor Market Search

Hong Lan ()

Computational Economics, 2018, vol. 51, issue 1, No 1, 34 pages

Abstract: Abstract I compare the performance of solution methods in solving a standard real business cycle model with labor market search frictions. Under the conventional calibration, the model is solved by the projection method using the Chebyshev polynomials as its basis, and the perturbation methods up to third order in both levels and logs. Evaluated by two accuracy tests, the projection approximation achieves the highest degree of accuracy, closely followed by the third order perturbation in levels. Although different in accuracy, all the approximated solutions produce simulated moments similar in value.

Keywords: Computational methods; DSGE; Business cycles; Search and matching; Accuracy test (search for similar items in EconPapers)
JEL-codes: C63 C68 E32 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10614-017-9670-z Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
Working Paper: Comparing Solution Methods for DSGE Models with Labor Market Search (2014) Downloads
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: https://EconPapers.repec.org/RePEc:kap:compec:v:51:y:2018:i:1:d:10.1007_s10614-017-9670-z

Ordering information: This journal article can be ordered from
http://www.springer. ... ry/journal/10614/PS2

DOI: 10.1007/s10614-017-9670-z

Access Statistics for this article

Computational Economics is currently edited by Hans Amman

More articles in Computational Economics from Springer, Society for Computational Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2020-06-21
Handle: RePEc:kap:compec:v:51:y:2018:i:1:d:10.1007_s10614-017-9670-z