NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Solving Large Scale Rational Expectations Models

Jess Gaspar, Kenneth L. Judd

NBER Technical Working Paper No. 207
Issued in February 1997
NBER Program(s):   PE

We explore alternative approaches to numerical solutions of large rational expectations models. We discuss and compare several current alternatives, focussing on the tradeoffs in accuracy, space, and speed. The models range from representative agent models with many goods and capital stocks, to models of heterogeneous agents with complete or incomplete asset markets. The methods discussed include perturbation and projection methods. We show that these methods are capable of analyzing moderately large models even when we use only elementary, general purpose numerical methods.

download in pdf format
   (1398 K)

email paper

This paper is available as PDF (1398 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Published: Gaspar, Jess and Kenneth L. Judd. "Solving Large-Scale Rational-Expectations Models," Macroeconomic Dynamics, 1997, v1(1,Jan), 45-75.

Users who downloaded this paper also downloaded these:
Bansal and Yaron w8059 Risks for the Long Run: A Potential Resolution of Asset Pricing Puzzles
Judd and Guu w8135 Asymptotic Methods for Asset Market Equilibrium Analysis
Judd t0208 Computational Economics and Economic Theory: Substitutes or Complements
Judd, Maliar, and Maliar w15296 Numerically Stable Stochastic Simulation Approaches for Solving Dynamic Economic Models
Judd, Maliar, and Maliar w17418 How to Solve Dynamic Stochastic Models Computing Expectations Just Once
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us