Cross-country differences in output persistence are well documented in the literature. Further, Fatás (2000) finds a strong positive correlation between the persistence of fluctuations and long-term average growth rates for a sample that includes the G7 countries and eight additional OECD...

This paper compares the performance of a log-linear method and a parameterized expectations method in solving a dynamic general equilibrium endogenous growth model with human capital. Quantitative evaluation based on second moment statistics shows that the results provided by the two numerical...