IDEAS home Printed from https://ideas.repec.org/h/spr/sptchp/978-3-662-63982-5_5.html
   My bibliography  Save this book chapter

Numerical Solution Methods

In: Economic Growth

Author

Listed:
  • Alfonso Novales

    (Complutense University of Madrid)

  • Esther Fernández

    (Complutense University of Madrid)

  • Jesús Ruiz

    (Complutense University of Madrid)

Abstract

We start by considering the stochastic optimal growth model of Chap. 4 , without taxes, explaining the construction of linear and log-linear approximations. Different solution methods are described: the Blanchard and Kahn approach, Uhlig’s method of undetermined coefficients, and Sims’ method based on an eigenvalue–eigenvector decomposition. We pay special attention to characterizing stability. We explain their practical implementation and discuss some of the results obtained. After that, we implement the same methods to solve the stochastic optimal growth model under different tax specifications and discuss some policy issues. The chapter closes with nonlinear solution methods, such as Marcet’s Parameterized Expectations and Projection methods. We apply them to the standard Cass–Koopmans growth model and provide MATLAB programs for their implementation.

Suggested Citation

  • Alfonso Novales & Esther Fernández & Jesús Ruiz, 2022. "Numerical Solution Methods," Springer Texts in Business and Economics, in: Economic Growth, edition 3, chapter 5, pages 213-278, Springer.
  • Handle: RePEc:spr:sptchp:978-3-662-63982-5_5
    DOI: 10.1007/978-3-662-63982-5_5
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. He, Yong, 2018. "On the sustainability of maximizing GDP Growth," MPRA Paper 88549, University Library of Munich, Germany.
    2. Smith, Matthew, 2018. "Demand-Led Growth Theory in a Classical Framework: Its Superiority, Its Limitations, and Its Explanatory Power," Centro Sraffa Working Papers CSWP29, Centro di Ricerche e Documentazione "Piero Sraffa".
    3. Sergey Kondyan & Karine Yenokyan, 2019. "The Effect of Foreign Direct Investment on Economic Growth," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 45(4), pages 532-564, October.
    4. Ji Uk Kim, 2020. "Technology diffusion, absorptive capacity, and income convergence for Asian developing countries: a dynamic spatial panel approach," Empirical Economics, Springer, vol. 59(2), pages 569-598, August.
    5. Kazunori Nakajima & Hisayoshi Morisugi & Masafumi Morisugi & Naoki Sakamoto, 2014. "Measurement of flood damage due to climate change by dynamic spatial computable general equilibrium model," ERSA conference papers ersa14p673, European Regional Science Association.
    6. Piotr Pietraszewski, 2016. "Microeconomic fundamentals of the aggregate production function with constant returns to scale," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 45.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sptchp:978-3-662-63982-5_5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.