Computation of Business-Cycle Models with the Generalized Schur Method

18 Pages Posted: 11 Dec 2009

See all articles by Burkhard Heer

Burkhard Heer

University of Augsburg; CESifo (Center for Economic Studies and Ifo Institute)

Alfred Maussner

University of Augsburg - Faculty of Business and Economics

Date Written: December 2009

Abstract

We describe an algorithm that is able to compute the solution of a singular linear difference system under rational expectations. The algorithm uses the Generalized Schur Factorization and is illustrated by a simple example.

Keywords: stochastic dynamic general equilibrium, linear solution methods, algorithm, Generalized Schur factorization, business cycles

JEL Classification: C63, C68, E32

Suggested Citation

Heer, Burkhard and Maussner, Alfred, Computation of Business-Cycle Models with the Generalized Schur Method (December 2009). CESifo Working Paper Series No. 2873. Available at SSRN: https://ssrn.com/abstract=1521419

Burkhard Heer (Contact Author)

University of Augsburg ( email )

Universitätsstr. 2
Augsburg, 86159
Germany

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Alfred Maussner

University of Augsburg - Faculty of Business and Economics ( email )

Universitaetsstr. 16
86135 Augsburg
Germany
+49 821 598 4187 (Phone)
+49 821 598 4231 (Fax)

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