Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5099942 | Journal of Economic Dynamics and Control | 2006 | 32 Pages |
Abstract
This paper compares solution methods for dynamic equilibrium economies. We compute and simulate the stochastic neoclassical growth model with leisure choice using first, second, and fifth order perturbations in levels and in logs, the finite elements method, Chebyshev polynomials, and value function iteration for several calibrations. We document the performance of the methods in terms of computing time, implementation complexity, and accuracy, and we present some conclusions based on the reported evidence.
Keywords
Related Topics
Physical Sciences and Engineering
Mathematics
Control and Optimization
Authors
S. BoraÄan Aruoba, Jesús Fernández-Villaverde, Juan F. Rubio-RamÃrez,