Solving the multi-country Real Business Cycle model using a monomial rule Galerkin method
| Autor: | Paul Pichler |
|---|---|
| Rok vydání: | 2011 |
| Předmět: |
Economics and Econometrics
Monomial Mathematical optimization State variable 050208 finance Control and Optimization Applied Mathematics Computation C63 Galerkin method Weighted residuals Monomial cubature rules Curse of dimensionality Multi-Country Real Business Cycle Model 05 social sciences 0502 economics and business Projection method Business cycle Economic model 050207 economics Galerkin method Curse of dimensionality Mathematics |
| Zdroj: | Journal of Economic Dynamics and Control. 35:240-251 |
| ISSN: | 0165-1889 |
| DOI: | 10.1016/j.jedc.2010.09.009 |
| Popis: | I propose a Galerkin projection method for solving dynamic economic models with many state variables. This method employs non-product monomial integration formulas for the computation of weighted residuals, and its computational cost therefore increases only polynomially in the model's dimensionality. I illustrate the practical implementation of the proposed algorithm by solving several specifications of the multi-country Real Business Cycle model described in Den Haan et al. [2010. Computational suite of models with heterogeneous agents: multi-country Real Business Cycle models. Journal of Economic Dynamics and Control, this issue], and briefly discuss two possible routes for further improving its numerical accuracy. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|
Full Text from ScienceDirect