A Systematic Comparison Of Alternative Linear Rational Expectation Model Solution Techniques
Since Blanchard & Kahn's seminal article (Blanchard and Kahn, 1980) a number of alternative approaches for solving linear rational expectations models have emerged. This paper describes, compares and contrasts the techniques of Anderson & Moore (Anderson, 1997; Anderson and Moore, 1983; Anderson and Moore, 1985), Binder (Binder and Peseran, 1994), King & Watson (King and Watson, 1998), Klein (Klein, 1999), Sims (Sims, 1996) QZ method, Uhlig (Uhlig, 1999) and Zadrozny (Zadrozny, 1998). The paper identifies several dimensions for comparison including computational efficiency, computational accuracy, theoretical rigor, ease of use and documentation. The paper employs linear algebra to reconcile the theoretical differences in the approaches. The paper uses a numerical example to characterize practical differences in employing the alternative procedures.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||05 Jul 2000|
|Date of revision:|
|Contact details of provider:|| Postal: |
Fax: +34 93 542 17 46
Web page: http://enginy.upf.es/SCE/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:sce:scecf0:142. 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: (Christopher F. Baum)
If references are entirely missing, you can add them using this form.