Comparing Solution Methods for Dynamic Equilibrium Economies

S. Boragan Aruoba, Jesus Fernandez-Villaverde and Juan F Rubio-Ramirez

PIER Working Paper Archive from Penn Institute for Economic Research, Department of Economics, University of Pennsylvania

Abstract: This paper compares solution methods for dynamic equilibrium economies. We compute and simulate the stochastic neoclassical growth model with leisure choice using Undetermined Coefficients in levels and in logs, Finite Elements, Chebyshev Polynomials, Second and Fifth Order Perturbations and Value Function Iteration for several calibrations. We document the performance of the methods in terms of computing time, implementation complexity and accuracy and we present some conclusions about our preferred approaches based on the reported evidence.

Keywords: Dynamic Equilibrium Economies; Computational Methods; Linear and Nonlinear Solution Methods (search for similar items in EconPapers)
JEL-codes: C63 C68 E37 (search for similar items in EconPapers)
Pages: 76 pages
Date: 2003-11-23
New Economics Papers: this item is included in nep-cmp, nep-dge and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (38)

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Related works:
Journal Article: Comparing solution methods for dynamic equilibrium economies (2006)
Working Paper: Comparing Solution Methods for Dynamic Equilibrium Economies (2005)
Working Paper: Comparing solution methods for dynamic equilibrium economies (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:pen:papers:04-003

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