Solving Dynamic General Equilibrium Models Using a Second-Order Approximation to the Policy Function

Stephanie Schmitt-Grohe and Martín Uribe ()

Departmental Working Papers from Rutgers University, Department of Economics

Abstract: This paper derives a second-order approximation to the solution of rational expectations, dynamic, general equilibrium models. To illustrate its applicability, the method is used to solve the dynamics of a simple neoclassical model. The paper closes with a brief description of a set of MATLAB programs designed to implement the method.

Keywords: Perturbation Method; Second Order Approximation; Solving Dynamic General Equilibrium Models (search for similar items in EconPapers)
JEL-codes: C63 E0 (search for similar items in EconPapers)
Date: 2001-07-24
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Citations: View citations in EconPapers (67)

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http://www.sas.rutgers.edu/virtual/snde/wp/2001-06.pdf (application/pdf)

Related works:
Journal Article: Solving dynamic general equilibrium models using a second-order approximation to the policy function (2004)
Working Paper: Solving Dynamic General Equilibrium Models Using a Second-Order Approximation to the Policy Function (2002)
Working Paper: Solving Dynamic General Equilibrium Models Using a Second-Order Approximation to the Policy Function (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:rut:rutres:200106

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