Simulation-Based Methods

Burkhard Heer and Alfred Maußner ()
Additional contact information
Alfred Maußner: University of Augsburg

Chapter Chapter 6 in Dynamic General Equilibrium Modeling, 2024, pp 311-368 from Springer

Abstract: Abstract This chapter presents methods that combine stochastic simulation with other numerical tools to find approximate solutions on the model’s ergodic set. In the first part, Heer and Maußner describe the extended path method, which is based on the repeated solution of a large system of nonlinear equations, and apply it to compute the benchmark business cycle model and the model of a small open economy. In the second part, they consider approaches that combine stochastic simulation with the methods of function approximation. The computation of the residuals and the ultimate solution can involve a wide variety of methods, as illustrated with the help of the benchmark business cycle model. The chapter concludes with a detailed description of a computationally more involved monetary model.

Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:spr:sptchp:978-3-031-51681-8_6

Ordering information: This item can be ordered from
http://www.springer.com/9783031516818

DOI: 10.1007/978-3-031-51681-8_6

Access Statistics for this chapter

More chapters in Springer Texts in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().