Euler Equation Approach for Emerging-market Macro Models

Autor:	Tack Yun, Bulent Guler
Rok vydání:	2013
Předmět:	Euler method symbols.namesake Semi-implicit Euler method Aggregate (data warehouse) symbols Dynamic stochastic general equilibrium Economics Piecewise Applied mathematics Macro General Economics Econometrics and Finance Backward Euler method Euler equations
Zdroj:	International Economic Journal. 27:201-215
ISSN:	1743-517X 1016-8737
DOI:	10.1080/10168737.2013.796111
Popis:	This paper focuses on how to obtain numerical solutions to emerging-market DSGE models with occasionally binding constraints by using the Euler equation, rather than using value functions of households. The main point is that the Euler-equation approach works in a fast and simple way for a variety of recent emerging-market macro models. An important reason behind this point is that it is relatively easy to pin down the functional form of aggregate equilibrium conditions in these models. The time-iteration method is applied to Euler equations of a small open-economy with overborrowings. It is discussed how to use the Euler equation approach to recent models of sovereign debt and to show that the presence of the Laffer-curve of debt-revenues leads us to use the piecewise parameterized-expectations approach.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::e5119f45bfce9ebe9d0250f671404bb3 https://doi.org/10.1080/10168737.2013.796111 Zobrazit plný text záznamu Plný text ve formátu PDF Plný text ve formátu HTML
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