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Working Paper

Solving Dynamic Equilibrium Models by a Method of Undetermined Coefficients

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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.
02.01.1998ISSN 2573-7953 WP 98-04DOI 10.26509/frbc-wp-199804

Working Papers of the Federal Reserve Bank of Cleveland are preliminary materials circulated to stimulate discussion and critical comment on research in progress. They may not have been subject to the formal editorial review accorded official Federal Reserve Bank of Cleveland publications. The views expressed in this paper are those of the authors and do not represent the views of the Federal Reserve Bank of Cleveland or the Federal Reserve System.

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