Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/25790
Authors: 
Trimborn, Timo
Koch, Karl-Josef
Steger, Thomas M.
Year of Publication: 
2006
Series/Report no.: 
CESifo working paper 1745
Abstract: 
We propose the relaxation algorithm as a simple and powerful method for simulating the transition process in growth models. This method has a number of important advantages: (1) It can easily deal with a wide range of dynamic systems including stiff differential equations and systems giving rise to a continuum of stationary equilibria. (2) The application of the procedure is fairly user friendly. The only input required consists of the dynamic system. (3) The variant of the relaxation algorithm we propose exploits in a natural manner the infinite time horizon, which usually underlies optimal control problems in economics. As an illustrative application, we simulate the transition process of the Jones (1995) and the Lucas (1988) model.
JEL: 
C61
C63
O40
Document Type: 
Working Paper

Files in This Item:
File
Size
211.83 kB





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