Solving Dynamic Equilibrium Models by a Method of Undetermined Coefficients
42 Pages Posted: 10 Jul 2000 Last revised: 13 Feb 2022
Date Written: February 1998
Abstract
I present an undetermined coefficients method for obtaining a linear approximating to the solution of a dynamic, rational expectations model. I also show how that solution can be used to compute the model's implications for impulse response functions and for second moments.
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