TY - JOUR
T1 - Computing second-order-accurate solutions for rational expectation models using linear solution methods
AU - Lombardo, Giovanni
AU - Sutherland, Alan
PY - 2007/2
Y1 - 2007/2
N2 - This paper shows how to compute a second-order accurate solution of a non-linear rational expectation model using algorithms developed for the solution of linear rational expectation models. The result is a state-space representation for the realized values of the variables of the model. This state-space representation can easily be used to compute impulse responses as well as conditional and unconditional forecasts. (C) 2006 Elsevier B.V. All rights reserved.
AB - This paper shows how to compute a second-order accurate solution of a non-linear rational expectation model using algorithms developed for the solution of linear rational expectation models. The result is a state-space representation for the realized values of the variables of the model. This state-space representation can easily be used to compute impulse responses as well as conditional and unconditional forecasts. (C) 2006 Elsevier B.V. All rights reserved.
KW - second-order approximation
KW - solution methods for rational expectation models
KW - POLICY
UR - http://www.scopus.com/inward/record.url?scp=33846303585&partnerID=8YFLogxK
UR - http://www.sciencedirect.com/science/article/B6V85-4JFGF55-3/2/c342f0ce59a828bcb48e90ae36208b01
U2 - 10.1016/j.jedc.2005.10.004
DO - 10.1016/j.jedc.2005.10.004
M3 - Article
SN - 0165-1889
VL - 31
SP - 515
EP - 530
JO - Journal of Economic Dynamics and Control
JF - Journal of Economic Dynamics and Control
IS - 2
ER -