Approximation Errors of Perturbation Methods in Solving a Class of Dynamic Stochastic General Equilibrium Models

被引：0
|
作者：
Xuan Liu
Zhiwei Cui
机构：
[1] East Carolina University,Department of Economics
[2] Beijing University of Aeronautics & Astronautics,School of Economics & Management
来源：
Computational Economics | 2011年 / 38卷
关键词：
Perturbation method; Approximation error; Lucas distributions;
D O I：
暂无
中图分类号：
学科分类号：
摘要：
We establish the standard procedures in solving a class of dynamic stochastic general equilibrium models with a second-order approximation to the policy function. The innovation is that the means of exogenous shocks vary with the variances. The numerical results show that second-order perturbation methods generate large approximation errors regarding to the responses of policy functions to shocks.
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页码：107 / 128
页数：21
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