T�tulo: On Some Computational Aspects of Real Business Cycle Theory Classic Reprint
Editor: Forgotten Books
Fecha de publicaci�n: 2018
Idioma: Ingl�s
ISBN 10: 1334539103
ISBN 13: 9781334539107
Encuadernaci�n: PAP
Estado: New
Peso: 104 gramos

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Sinopsis

Excerpt from On Some Computational Aspects of Real Business Cycle Theory

It has been common practice in the recent Real Business Cycle (bbc) literature to approximate, quadratically, the return function about the steady state and then to use this approximate return function as the basis for generating the economy's equilibrium time series. This is done for well known reasons of analytic and computational simplicity with a quadratic return function the decision rules are linear and may be easily determined. To compute the optimal decision rules numerically via standard value iteration procedures is simply too intensive when the number of decision and state variables is large. Nevertheless, it is legitimate to question the extent to which accuracy is compromised using such approximate procedures.

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