Solving Dynamic Equilibrium Models by a Method of Undetermined Coefficients

Christiano, Lawrence

doi:10.26509/frbc-wp-199804

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Working Paper

Solving Dynamic Equilibrium Models by a Method of Undetermined Coefficients

Lawrence Christiano

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This paper presents an undetermined-coefficients method for obtaining a linear approximation to the solution of a dynamic rational-expectations model. It also shows that solution can be used to compute the model’s implications for impulse response functions and for second moments.

02.01.1998WP 98-04DOI 10.26509/frbc-wp-199804

Suggested Citation

Christiano, Lawrence. 1998. “Solving Dynamic Equilibrium Models by a Method of Undetermined Coefficients.” Federal Reserve Bank of Cleveland, Working Paper No. 98-04. https://doi.org/10.26509/frbc-wp-199804

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