Computational Economics

, Volume 11, Issue 1–2, pp 71–87 | Cite as

Numerical Strategies for Solving the Nonlinear Rational Expectations Commodity Market Model

  • Mario J. Miranda


In this paper, I compare the accuracy, efficiency and stability of different numerical strategies for computing approximate solutions to the nonlinear rational expectations commodity market model. I find that polynomial and spline function collocation methods are superior to the space discretization, linearization and least squares curve-fitting methods that have been preferred by economists in the past.

nonlinear rational expectations models numerical methods 


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Copyright information

© Kluwer Academic Publishers 1997

Authors and Affiliations

  • Mario J. Miranda
    • 1
  1. 1.Ohio State UniversityColumbusU.S.A.

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