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Alternatives to initialize the Parameterized Expectations Algorithm

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Author Info
Pérez, Javier J.
Sánchez, A. Jesús

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Abstract

In this paper we analyze the convergence properties of some standard approaches to initialize the Parameterized Expectations Algorithm. We carry out a Monte Carlo experiment to compare their performance in computational terms. We do so within the framework of the standard neoclassical growth model and of the monetary model of Cooley and Hansen (Cooley, T.F., Hansen, G., 1989. The Inflation Tax in a Real Business Cycle Model. American Economic Review 79, 733-748).

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File URL: http://www.sciencedirect.com/science/article/B6V84-4V2NK7T-9/2/56a7859f2785173ae7fb5c51d91ce8f1
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Publisher Info
Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 102 (2009)
Issue (Month): 2 (February)
Pages: 116-118
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Handle: RePEc:eee:ecolet:v:102:y:2009:i:2:p:116-118

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Web page: http://www.elsevier.com/locate/ecolet

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Related research
Keywords: Nonlinear models Numerical solution methods Parameterized Expectations Algorithm Optimal growth;

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This page was last updated on 2009-12-12.


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