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Approximation welfare 1 Computing Ramsey steady states 1 Medium-scale DSGE models 1
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Schmitt-Grohé, Stephanie 1 Uribe, Martín 1
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An OLS approach to computing Ramsey equilibria in medium-scale macroeconomic models
Schmitt-Grohé, Stephanie; Uribe, Martín - In: Economics Letters 115 (2012) 1, pp. 128-129
This note describes a general procedure for solving for the steady state and the dynamics implied by the Ramsey equilibrium of medium-scale macroeconomic models. The procedure yields an exact numerical solution for the steady state and second-order accurate dynamics. It introduces a novel...
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