Working Paper
Computation of Business-Cycle Models with the Generalized Schur Method
Burkhard Heer, Alfred Maussner
CESifo, Munich, 2009
CESifo Working Paper No. 2873
CESifo, Munich, 2009
CESifo Working Paper No. 2873
We describe an algorithm that is able to compute the solution of a singular linear difference system under rational expectations. The algorithm uses the Generalized Schur Factorization and is illustrated by a simple example.
CESifo Category
Empirical and Theoretical Methods
Empirical and Theoretical Methods
Keywords: stochastic dynamic general equilibrium, linear solution methods, algorithm, Generalized Schur factorization, business cycles
JEL Classification: C680,E320