@techreport{Juillard2007Computing,
abstract = {Since the contribution of Kydland and Prescott (1977), it is well known that the optimal Ramsey policy is time inconsistent. In a series of recent contributions, Woodford (2003) proposes a new methodology to circumvent this problem, namely the timeless perspective solution. However, one main limitation is that it is not yet empirically implementable. In this paper, we develop a new methodology to compute initial values of the Lagrange multipliers in order to implement the timeless-perspective solution. In so doing, we also provide a generalization of the Ramsey and timeless-perspective problems. We apply our results to a small-open economy model in Canada.},
address = {Ottawa},
author = {Michel Juillard and Florian Pelgrin},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {C6; E5; E6; 330; Monetary policy framework; Geldpolitik; Zeit\"{o}konomie; Dynamisches Modell; Kanada},
language = {eng},
number = {2007,32},
publisher = {Bank of Canada},
title = {Computing optimal policy in a timeless-perspective: An application to a small-open economy},
type = {Bank of Canada Working Paper},
url = {http://hdl.handle.net/10419/53771},
year = {2007}
}
