Rabitsch, Katrin; Stepanchuk, Serhiy; Tsyrennikov, Viktor - Vienna University of Economics and Business, Department … - 2014
We compare the performance of the perturbation-based (local) portfolio solution method of Devereux and Sutherland (2010a, 2011) with a global solution method. We find that the local method performs very well when the model is designed to capture stylized macroeconomic facts and countries/agents...