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A Suite Of Dynamic Equilibrium Problems

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Author Info
Kenneth L. Judd (Hoover Institution)

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Abstract

There are many numerical algorithms to solve any problem. It is often difficult to compare competing algorithms since authors demonstrate their algorithms on different problems. In the numerical analysis literature, the typical approach to compare alternative algorithms is to develop a suite of similar problems and use them to compare alternative procedures. These comparisons allow one to determine the relative advantages of competing algorithms. Taylor and Uhlig (1990) is an example of such algorithm comparisons, but it uses just the simplest stochastic growth model.This paper proposes a suite of dynamic general equilibrium models of greater generality and variety than the problem used in Taylor and Uhlig. We propose a broad range of models. Robust methods for solving dynamic economic models should be able to handle heterogeneous agents, elastic labor supply, and multiple assets. They should also be able to model the effects of monetary, trade, and taxation policies. This paper also reviews the literature, indicating which combinations of methods and models have been investigated. We also will review alternative methods and the computational issues which can be resolved by their application to various problems from the proposed suite.

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Publisher Info
Paper provided by Society for Computational Economics in its series Computing in Economics and Finance 2000 with number 362.

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Date of creation: 05 Jul 2000
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Handle: RePEc:sce:scecf0:362

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Postal: CEF 2000, Departament d'Economia i Empresa, Universitat Pompeu Fabra, Ramon Trias Fargas, 25,27, 08005, Barcelona, Spain
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