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- W2896070525 abstract "This study proposes an approach based on a perturbation technique to construct global solutions to dynamic stochastic general equilibrium models (DSGE). The main idea is to expand a solution in a series of powers of a small parameter scaling the uncertainty in the economy around a solution to the deterministic model, i.e. the model where the volatility of the shocks vanishes. If a deterministic path is global in state variables, then so are the constructed solutions to the stochastic model, whereas these solutions are local in the scaling parameter. Under the assumption that a deterministic path is already known the higher order terms in the expansion are obtained recursively by solving linear rational expectations models with time-varying parameters. The present work also proposes a method rested on backward recursion for solving general systems of linear rational expectations models with time-varying parameters and determines the conditions under which the solutions of the method exist." @default.
- W2896070525 created "2018-10-26" @default.
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- W2896070525 date "2017-01-01" @default.
- W2896070525 modified "2023-09-26" @default.
- W2896070525 title "Semi-Global Solutions to DSGE Models: Perturbation Around a Deterministic Path" @default.
- W2896070525 hasPublicationYear "2017" @default.
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