Computing the steady state of linear quadratic optimization for models with rational expectations
| Authors |
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| Publication date |
1998
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| Journal |
Economics Letters
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| Volume | Issue number |
58 | 2
|
| Pages (from-to) |
185-191
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| Organisations |
-
Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
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| Abstract |
In this paper we present a simple algorithm for computing the steady state of the Linear-Quadratic control model with rational expectations. The method uses Sims' approach for solving rational expectations models first, and then solves the steady state through an iterative scheme.
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| Document type |
Article
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| Language |
English
|
| Published at |
https://doi.org/10.1016/S0165-1765(97)00263-2
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