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A Simple Procedure for the Numerical Solution of Discrete Time Linear Two-Point Boundary-Value Problems with Finite Horizon and its use for Simulating Discrete Time Linear Models under Perfect Foresig

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  • Graziani, Carlo

Abstract

This paper presents a simple procedure for the numerical solution of discrete time linear two-point boundary-value problems with finite horizon. The paper illustrates its use for simulating discrete time linear models under perfect foresight. For that purpose two simple models were chosen from the standard macroeconomic literature.The outstanding feature of the proposed procedure is its simplicity.

Suggested Citation

  • Graziani, Carlo, 1999. "A Simple Procedure for the Numerical Solution of Discrete Time Linear Two-Point Boundary-Value Problems with Finite Horizon and its use for Simulating Discrete Time Linear Models under Perfect Foresig," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 53(1), January.
    • Handle: RePEc:fgv:epgrbe:v:53:y:1999:i:1:a:744
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    1. Blanchard, Olivier Jean & Kahn, Charles M, 1980. "The Solution of Linear Difference Models under Rational Expectations," Econometrica, Econometric Society, vol. 48(5), pages 1305-1311, July.
    2. Dornbusch, Rudiger, 1976. "Expectations and Exchange Rate Dynamics," Journal of Political Economy, University of Chicago Press, vol. 84(6), pages 1161-1176, December.
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