Solving the multi-country Real Business Cycle model using a monomial rule Galerkin method

B-Tier
Journal: Journal of Economic Dynamics and Control
Year: 2011
Volume: 35
Issue: 2
Pages: 240-251

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

I propose a Galerkin projection method for solving dynamic economic models with many state variables. This method employs non-product monomial integration formulas for the computation of weighted residuals, and its computational cost therefore increases only polynomially in the model's dimensionality. I illustrate the practical implementation of the proposed algorithm by solving several specifications of the multi-country Real Business Cycle model described in Den Haan et al. [2010. Computational suite of models with heterogeneous agents: multi-country Real Business Cycle models. Journal of Economic Dynamics and Control, this issue], and briefly discuss two possible routes for further improving its numerical accuracy.

Technical Details

RePEc Handle
repec:eee:dyncon:v:35:y:2011:i:2:p:240-251
Journal Field
Macro
Author Count
1
Added to Database
2026-01-29