Chapter 5 Numerical solution of dynamic economic models

Research output: Contribution to journalReview article

24 Scopus citations

Abstract

This chapter is concerned with numerical simulation of dynamic economic models. We focus on some basic algorithms and assess their accuracy and stability properties. This analysis is useful for an optimal implementation and testing of these procedures, as well as to evaluate their performance. Several examples are provided in order to illustrate the functioning and efficiency of these algorithms.

Original languageEnglish (US)
Pages (from-to)311-386
Number of pages76
JournalHandbook of Macroeconomics
Volume1
Issue numberPART A
DOIs
StatePublished - Dec 1 1999

Keywords

  • Euler equation
  • approximation error
  • dynamic economic model
  • numerical algorithm
  • numerical solution
  • policy function
  • value function

ASJC Scopus subject areas

  • Economics and Econometrics
  • Economics, Econometrics and Finance (miscellaneous)

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