Computation of Business-Cycle Models with the Generalized Schur Method
18 Pages Posted: 11 Dec 2009
Date Written: December 2009
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: Suggested Citation