Some linear-Quadratic Solution Methods to Stochastic Nonlinear Rational Expectations Models

Maurice Roche

Economics Department Working Paper Series from Department of Economics, National University of Ireland - Maynooth

Abstract: Commonly used linear-quadratic solution methods to nonlinear models are described in detail using a closed economy real business cycle model as an illustration. We find that all method yield identical coefficients on optimal decision rules. Some methods are easier to use in economies where distortions do not allow a planners solution to solve for the competitive equilibrium. Finally, we find that for some methods only a few modifications to existing computer programs are needed when solving different models.

Keywords: ECONOMIC MODELS; STOCHASTIC ANALYSIS; EXPECTATIONS; ECONOMETRICS (search for similar items in EconPapers)
Pages: 17 pages
Date: 1994
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:may:mayecw:n510594

Access Statistics for this paper

More papers in Economics Department Working Paper Series from Department of Economics, National University of Ireland - Maynooth Contact information at EDIRC.
Bibliographic data for series maintained by ( this e-mail address is bad, please contact ).