Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/152921
Authors: 
Lombardo, Giovanni
Sutherland, Alan
Year of Publication: 
2005
Series/Report no.: 
ECB Working Paper 487
Abstract: 
This paper shows how to compute a second-order accurate solution of a non-linear rational expectation model using algorithms developed for the solution of linear rational expectation models. The result is a state-space representation for the realized values of the variables of the model. This state-space representation can easily be used to compute impulse responses as well as conditional and unconditional forecasts.
Subjects: 
Second order approximation
Solution method for rational expectation models
JEL: 
C63
E0
Document Type: 
Working Paper

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