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- W62259114 abstract "In Chapter 2 we briefly considered four solution algorithms for solving forward expectations models. The analysis of Blanchard and Kahn (1980) depends on solving an eigenvalue problem for a system of linear difference equations, and exact analytical results can be obtained. For a nonlinear model the eigenvalue problem is not defined, hence we could only apply this approach to a linearization of the nonlinear system. However, the linearization itself will only be an approximation to the system of interest and so the solution is ultimately not exact. Furthermore, the linearization is only valid in the neighbourhood of some base trajectory around which the model is linearized (Kuh, Neese and Hollinger, 1985) and this imposes limits on the use of the linearized form." @default.
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- W62259114 date "1992-01-01" @default.
- W62259114 modified "2023-09-27" @default.
- W62259114 title "Solution Methods for Nonlinear Forward Expectations Models" @default.
- W62259114 doi "https://doi.org/10.1007/978-94-015-8002-1_3" @default.
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