Solving Dynamic Equilibrium Models by a Method of Undetermined Coefficients

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51 Scopus citations

Abstract

I present an undetermined coefficients method for obtaining a linearapproximating to the solution of a class of dynamic, rational expectationsmodels. I also show how that solution can be used to compute a model'simplications for impulse response functions and for second moments.

Original languageEnglish (US)
Pages (from-to)21-55
Number of pages35
JournalComputational Economics
Volume20
Issue number1-2
DOIs
StatePublished - Oct 2002

Keywords

  • Euler equation
  • expectational difference equations
  • frequency domain
  • matrix polynomial
  • real business cycle model
  • time-to-build

ASJC Scopus subject areas

  • Economics, Econometrics and Finance (miscellaneous)
  • Computer Science Applications

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