Gapen, Michael; Cosimano, Thomas - In: Studies in Nonlinear Dynamics & Econometrics 9 (2007) 2, pp. 1263-1263
This paper applies nonlinear projection methods to solve Ramsey problems in a stochastic monetary economy. The presence of nonlinear distortions in the Ramsey problem requires the use of a solution procedure which captures these effects. The nonlinear projection method, even with low-order...