Second Order Accurate Solution of Discrete Time Dynamic Equilibrium Models

@inproceedings{Sims2000SecondOA,
  title={Second Order Accurate Solution of Discrete Time Dynamic Equilibrium Models},
  author={Christopher A. Sims},
  year={2000}
}
It is now widely understood how to obtain first-order accurate approximations to the solution to a dynamic, stochastic general equilibrium model (DSGE model). Such solutions are fairly easy to construct and useful for a wide variety of purposes. They are likely to be accurate enough to be a basis for fitting the models to data, for example. However, for some purposes first-order accuracy is not enough. This is true in particular for comparing welfare across policies that do not have first-order… CONTINUE READING
Highly Cited
This paper has 40 citations. REVIEW CITATIONS

From This Paper

Topics from this paper.
32 Citations
0 References
Similar Papers

Citations

Publications citing this paper.
Showing 1-10 of 32 extracted citations

Similar Papers

Loading similar papers…