using four different approaches: second- and third-order perturbation, Chebyshev polynomials, and value function iteration … while being several orders of magnitude faster to run. Therefore, we conclude that perturbation methods are an attractive …

-order perturbation, Chebyshev polynomials, and value function iteration. We document the performance of the methods in terms of computing … time, implementation complexity, and accuracy. Our main finding is that a third-order perturbation is competitive in terms …. Therefore, we conclude that perturbation methods are an attractive approach for computing this class of problems. …

-varying disaster risk with perturbation, Taylor projection, and Smolyak collocation. Our main finding is that Taylor projection …

‐varying disaster risk with perturbation, Taylor projection, and Smolyak collocation. Our main finding is that Taylor projection …

differential version - and on a scalar perturbation of the support of the entire history of shocks. The resulting solution for any …

techniques that increase the accuracy of perturbation methods: a change of variables and a hybrid of local and global solutions …

-order perturbation method. The simulation results of impulse responses and second moments match the standardized features of incomplete …

Local (perturbation) methods compute solutions in one point and tend to deliver far lower accuracy levels than global … solution methods. We develop a hybrid method that solves for some policy functions locally (using a perturbation method) and …