Precision Performances of Terminal Conditions for Short Time Horizons Forward-Looking Systems
In this paper we investigate theoretically the numerical bias due to the truncation of structurally infinite time forward-looking models, by the means of various terminal conditions. On a general multivariate optimal growth model, we first analytically confirm some well-known heuristic properties for certain extreme spectral cases. However, we show that the heuristic findings stated in the literature, relying on intermediate spectral configurations, lack theoretical basis as that they omit, among other relevant features, the crucial role of initial conditions: in this case, comparison criteria exclusively based on spectral considerations lack theoretical sense. Numerical evidence is proposed to illustrate this point and other related empirical findings are presented. Citation Copyright 1997 by Kluwer Academic Publishers.
Volume (Year): 10 (1997)
Issue (Month): 2 (May)
|Contact details of provider:|| Web page: http://www.springerlink.com/link.asp?id=100248|
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:kap:compec:v:10:y:1997:i:2:p:169-86. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.