Solving the Neoclassical Growth Model with Quasi-Geometric Discounting : A Grid-Based Euler-Equation Method

@inproceedings{Maliar2005SolvingTN,
  title={Solving the Neoclassical Growth Model with Quasi-Geometric Discounting : A Grid-Based Euler-Equation Method},
  author={Lilia Maliar and Serguei Maliar},
  year={2005}
}
The standard neoclassical growth model with quasi-geometric discounting is shown elsewhere (Krusell, P. and Smith, A., CEPR Discussion Paper No. 2651, 2000) to have multiple solutions. As a result, value-iterative methods fail to converge. The set of equilibria is however reduced if we restrict our attention to the interior (satisfying the Euler equation) solution. We study the performance of a grid-based Euler-equation methods in the given context. We find that such a method converges to an… CONTINUE READING

From This Paper

Figures, tables, and topics from this paper.
7 Citations
8 References
Similar Papers

Similar Papers

Loading similar papers…