EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/18846
  
Title:Computation of business cycle models : a comparison of numerical methods PDF Logo
Authors:Heer, Burkhard
Maußner, Alfred
Issue Date:2004
Series/Report no.:CESifo working papers 1207
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.
Subjects:log-linearization
projection methods
extended path
value function iteration
parameterized expectations
genetic search
JEL:E32
C68
C63
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

Files in This Item:
File Description SizeFormat
cesifo1_wp1207.pdf686.72 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/18846

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.