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Solving Linear Rational Expectations Models

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Abstract

We describe methods for solving general linear rational expectations models in continuous or discrete timing with or without exogenous variables. The methods are based on matrix eigenvalue decompositions.

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References

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Sims, C.A. Solving Linear Rational Expectations Models. Computational Economics 20, 1–20 (2002). https://doi.org/10.1023/A:1020517101123

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  • DOI: https://doi.org/10.1023/A:1020517101123

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