Solving the multi-country real business cycle model using ergodic set methods / Serguei Maliar, Lilia Maliar, Kenneth L. Judd.

Author/creator Maliar, Serguei
Other author Judd, Kenneth L.
Other author Maliar, Lilia.
Other author National Bureau of Economic Research.
Format Electronic
Publication InfoCambridge, MA : National Bureau of Economic Research,
Supplemental ContentFull text available from NBER Working Papers

SeriesNBER working paper series ; working paper 16304
Working paper series (National Bureau of Economic Research : Online) ; working paper no. 16304. UNAUTHORIZED
Summary "We use the stochastic simulation algorithm, described in Judd, Maliar and Maliar (2009), and the cluster-grid algorithm, developed in Judd, Maliar and Maliar (2010a), to solve a collection of multi-country real business cycle models. The following ingredients help us reduce the cost in high-dimensional problems: an endogenous grid enclosing the ergodic set, linear approximation methods, fixed-point iteration and efficient integration methods, such as non-product monomial rules and Monte Carlo integration combined with regression. We show that high accuracy in intratemporal choice is crucial for the overall accuracy of solutions and offer two approaches, precomputation and iteration-on-allocation, that can solve for intratemporal choice both accurately and quickly. We also implement a hybrid solution algorithm that combines the perturbation and accurate intratemporal-choice methods"--National Bureau of Economic Research web site.
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Bibliography noteIncludes bibliographical references.
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Technical detailsMode of access: World Wide Web
Genre/formElectronic books.
LCCN 2010656305