A MATLAB Solver for Nonlinear Rational Expectations Models
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A framework for describing nonlinear rational expectation models is developed that synthesizes previously described approaches. Computational issues for solving such models include how the expectation operator is approximated, what family of approximation is used for the solution function, what criteria are used for choosing approximation parameters and what algorithm is used to identify the parameters. A user-friendly MATLAB procedure that incorporates a wide variety of possible choices is described.
Key wordsprojection methods rational expectations
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