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 language | English (US) |
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Pages (from-to) | 311-386 |
Number of pages | 76 |
Journal | Handbook of Macroeconomics |
Volume | 1 |
Issue number | PART A |
DOIs | |
State | Published - 1999 |
Externally published | Yes |
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)