@techreport{Heer2004Computation,
abstract = {We compare the numerical methods that are most widely applied in the computation of the
standard business cycle model with flexible labor. The numerical techniques imply
economically insignificant differences with regard to business cycle summary statistics except
for the volatility of investment. Furthermore, these results are robust with regard to the choice
of the functional form of the utility function and the model?s parameterization. In conclusion,
the simplest and fastest method, the log-linearization of the model around the steady state, is
found to be most convenient and appropriate for the standard business cycle model.},
author = {Burkhard Heer and Alfred Mau\ss{}ner},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {E32; C68; C63; 330; log-linearization; projection methods; extended path; value function iteration; parameterized expectations; genetic search; Konjunkturtheorie; Arbeitsmarktflexibilisierung; Numerisches Verfahren; Vergleich; Theorie},
language = {eng},
number = {1207},
title = {Computation of business cycle models : a comparison of numerical methods},
type = {CESifo working papers},
url = {http://hdl.handle.net/10419/18846},
year = {2004}
}
