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Algorithms for solving dynamic models with occasionally binding constraints

  • Lawrence J. Christiano
  • Jonas D.M. Fisher

A description and comparison of several algorithms for approximating the solution to a model in which inequality constraints occasionally bind. Their performance is evaluated using various parameterizations of the one-sector growth model with irreversible investment.

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Paper provided by Federal Reserve Bank of Cleveland in its series Working Paper with number 9711.

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Date of creation: 1997
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Handle: RePEc:fip:fedcwp:9711
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