This paper derives a method for constructing the likelihood function of a general class of linearized dynamic general equilibrium models that does not require the application of the Kalman filter. The method easily handles models in which variables are observed with error.

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...