EconPapers    
Economics at your fingertips  
 

A Simple and Intuitive Method to Solve Small Rational Expectations Models

Holger Strulik () and Martin Brunner ()

Quantitative Macroeconomics Working Papers from Hamburg University, Department of Economics

Abstract: We present a non-linear solution method of saddlepoint dynamics in discrete time optimization problems. It is based on the backward attractivity of the stable manifold and is very easy to implement. After an introduction to the general method we present two applications. First we consider the deterministic neoclassical growthmodel and demonstrate accuracy and stability of the method. Second we solve a basic real business cycle model.

Keywords: Saddlepoint Problems; Non-linear Dynamics; Stochastic Economic Growth (search for similar items in EconPapers)
JEL-codes: C61 C63 O40 (search for similar items in EconPapers)
Date: 2001-06
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.rrz.uni-hamburg.de/wst/qmwps/strulik.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.rrz.uni-hamburg.de/wst/qmwps/strulik.pdf [302 Found]--> https://www.rrz.uni-hamburg.de/wst/qmwps/strulik.pdf)

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:ham:qmwops:20106

Access Statistics for this paper

More papers in Quantitative Macroeconomics Working Papers from Hamburg University, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2019-06-19
Handle: RePEc:ham:qmwops:20106