Linear-Quadratic Approximation of Optimal Policy Problems
---- Acknowledgements -----
An earlier version of this paper was presented as a Plenary Lecture at the 10th Annual Conference on Computing in Economics and Finance, Amsterdam, July 2004. We would like to thank Filippo Altissimo, Vasco Curdia, Wouter Den Haan, Ken Judd, Jinill Kim, Andy Levin, Paul Levine, Diego Rodriguez Palenzuela, and Joseph Pearlman for comments, and the National Science Foundation for research support through a grant to the NBER. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.