Working Papers, Department of Economics, Rutgers, The State University of New Jersey 2001,06
This paper derives a second-order approximation to the solution of rational expectations, dynamic, general equilibrium models. To illustrate its applicability, the method is used to solve the dynamics of a simple neoclassical model. The paper closes with a brief description of a set of MATLAB programs designed to implement the method.
Perturbation Method Second Order Approximation Solving Dynamic General Equilibrium Models