Recently, perturbation has received attention as a numerical method for computing an approximate solution of a nonlinear dynamic stochastic model, which we call a nonlinear rational expectations (NLRE) model. To date perturbation methods have been described and applied as single-step...

Two fundamental sources of output growth are production capital and technological knowledge. We consider technological knowledge in the form of total-factor productivity (henceforth, "productivity") in a constant-elasticity-of-substitution (CES) production function. But capital and productivity...

Consider the discrete-time state equation and feedback control rule (1) x(t) = Fx(t-1) + Gu(t) + e(t), (2) u(t) = Px(t-1), where x is an nx1 state vector, u is an mx1 control variable, and e is an nx1 disturbance distributed NIID(0,S), F and G are nxn and nxm parameter matrices, and P is an mxn...

The purpose of the paper is to derive and illustrate a new suboptimal-consistent feedback solution for infinite-horizon linear-quadratic dynamic Stackelberg games which is in the same solution space as the infinite-horizon dynamic programming feedback solution, but which puts the leader in a...