In this paper, an Unobserved Components Model is employed to decompose German real GDP into the trend, cycle and seasonal components and the working day effect. The most important findings are: 1) The growth rate of potential output declined from 4.2 per cent in the sixties to 1.4 per cent at...

In this paper I develop Cyclic Value Function Iteration (CVFI), which is an adjustment to standard value function iteration. When using this algorithm, the inclusion of cyclic variables of any size into the state space of an infinite horizon dynamic structural model does not increase the...