Solving Dynamic Equilibrium Models by a Method of Undetermined Coefficients

42 Pages Posted: 10 Jul 2000  

Lawrence J. Christiano

Northwestern University; Federal Reserve Bank of Cleveland; Federal Reserve Bank of Chicago; Federal Reserve Bank of Minneapolis; National Bureau of Economic Research (NBER)

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.

Suggested Citation

Christiano, Lawrence J., Solving Dynamic Equilibrium Models by a Method of Undetermined Coefficients (February 1998). NBER Working Paper No. t0225. Available at SSRN: https://ssrn.com/abstract=226635

Lawrence J. Christiano (Contact Author)

Northwestern University ( email )

2003 Sheridan Road
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Federal Reserve Bank of Cleveland

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Federal Reserve Bank of Chicago

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Federal Reserve Bank of Minneapolis

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National Bureau of Economic Research (NBER)

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