Computational Approaches to Economic Problems pp 309-325 | Cite as

# Numerical Analysis of a Monetary Overlapping Generation Model

## Abstract

In this paper, mathematical and numerical analysis are applied to a nonlinear operator equation arising from monetary economic modeling. For the nonlinear operator equation the contraction property is established, and fixed point iterations are employed to numerically solve the equation based on finite element discretization. Convergence rate and error estimates are given for the numerical schemes. In this investigation, several numerical algorithms are proposed and analyzed. These algorithms have been realized as computer programs which make extensive use of several modern computer software packages such as *Matlab* (for numerical computations and graphics) and *Mathematica* (for symbolic computations).

## Keywords

Equilibrium Price Money Supply Piecewise Linear Function Price Function Contraction Property## Preview

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