Farmer, Roger E.A.; Khramov, Vadim; Nicolò, Giovanni - In: Journal of Economic Dynamics and Control 54 (2015) C, pp. 17-36
We propose a method for solving and estimating linear rational expectations models that exhibit indeterminacy and we provide step-by-step guidelines for implementing this method in the Matlab-based packages Dynare and Gensys. Our method redefines a subset of expectational errors as new...