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Solving Rational Expectations Models Using Excel

  • Holger Strulik

Simple problems of discrete-time optimal control can be solved using a standard spreadsheet software. The employed-solution method of backward iteration is intuitively understandable, does not require any programming skills, and is easy to implement so that it is suitable for classroom exercises with rational-expectations models. The author explains the method in general and shows how the basic models of neoclassical growth and real business cycles are solved using Microsoft Excel.

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File URL: http://hdl.handle.net/10.3200/JECE.35.3.269-283
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Article provided by Taylor & Francis Journals in its journal The Journal of Economic Education.

Volume (Year): 35 (2004)
Issue (Month): 3 (July)
Pages: 269-283

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Handle: RePEc:taf:jeduce:v:35:y:2004:i:3:p:269-283
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