Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/22873 
Year of Publication: 
2003
Series/Report no.: 
Bonn Econ Discussion Papers No. 25/2003
Publisher: 
University of Bonn, Bonn Graduate School of Economics (BGSE), Bonn
Abstract: 
The benefit from using second-order approximations tostochastic dynamic rational expec- tations models is explained. By example of the neoclassical growth model, this note as- sesses the accuracy of the obtained approximation. The implications for optimal policy are discussed.
Subjects: 
Second-order approximation
accuracy
optimal policy
JEL: 
C63
E0
Document Type: 
Working Paper

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