42 Pages Posted: 10 Jul 2000 Last revised: 15 Aug 2010
Date Written: February 1998
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: 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