Resource title

Gains from second-order approximations

Resource image

image for OpenScout resource :: Gains from second-order approximations

Resource description

The benefit from using second-order approximations to stochastic dynamic rational expectations models is explained. By example of the neoclassical growth model, this note assesses the accuracy of the obtained approximation. The implications for optimal policy are discussed.

Resource author

Matthias Paustian

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/22873

Resource license

Adapt according to the presented license agreement and reference the original author.