Using a stylized two-period model we compare portfolio solutions from two local solution approaches - the approach of Judd and Guu (2001) and the approach of Devereux and Sutherland (2010, 2011) - with the true nonlinear portfolio solution.

Using a stylized two-period model we compare portfolio solutions from two local solution approaches - the approach of Judd and Guu (2001) and the approach of Devereux and Sutherland (2010, 2011) - with the true nonlinear portfolio solution.

Using a stylized two-period model we compare portfolio solutions from two local solution approaches - the approach of Judd and Guu (2001) and the approach of Devereux and Sutherland (2010, 2011) - with the true nonlinear portfolio solution.

We compare the performance of the perturbation-based (local) portfolio solution method of Devereux and Sutherland (2010a, 2011) with a global solution method. We find that the local method performs very well when the model is designed to capture stylized macroeconomic facts and countries/agents...

Using a stylized two period model we obtain portfolio solutions from two solution approaches that belong to the class of local approximation methods – the approach of Judd and Guu (2001, hereafter ’JG’) and the approach of Devereux and Sutherland (2010, 2011, hereafter ’DS’) – and...

Substantial progress has been made in recent years in integrating optimal portfolios into (open macro) general equilibrium models using standard local approximation (perturbation) methods. We compare these perturbation-based portfolio solution methods with a global portfolio solution method to...

This thesis deals with a number of different topics in the field of international macroeconomics. It proposes theoretical models of the open economy to think about and analyze questions such as the effects of financial globalization, countries' external adjustment mechanism, international...

The degree of international risk sharing matters for how monetary policy should optimally be conducted in an open economy. This is because risk sharing affects the way in which monetary policy is affected by terms of trade considerations. In a standard two-country model with monopolistic...