Abstract
Dynamic rational expectation models are more difficult to solve than standard dynamic models. These technical difficulties have probably hindered the development and use of such models at the empirical level. The purpose of this paper is to introduce the principal methods of solution to potential builders and users of such models.
MIT. This paper is a revised and extended revision of a paper published in Economie Appliquee in 1983. I thank Andy Abel, Ken Arrow, Jim Poterba and Mark Watson for comments, the National Science Foundation for financial assistance.
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Blanchard, O.J. (1985). Methods of solution for dynamic rational expectations models: A survey. In: Manne, A.S. (eds) Economic Equilibrium: Model Formulation and Solution. Mathematical Programming Studies, vol 23. Springer, Berlin, Heidelberg. https://doi.org/10.1007/BFb0121034
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DOI: https://doi.org/10.1007/BFb0121034
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