Linear-quadratic approximation, external habit and targeting rules
نویسندگان
چکیده
منابع مشابه
Ser Ies No 759 / June 2007 Linear - Quadratic Approximation , External Habit and Targeting Rules
We examine the linear-quadratic (LQ) approximation of non-linear stochastic dynamic optimization problems in macroeconomics, in particular for monetary policy. We make four main contributions: first, we draw attention to a general Hamiltonian framework for LQ approximation due to Magill (1977). We show that the procedure for the ‘large distortions’ case of Benigno and Woodford (2003, 2005) is e...
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ژورنال
عنوان ژورنال: Journal of Economic Dynamics and Control
سال: 2008
ISSN: 0165-1889
DOI: 10.1016/j.jedc.2008.02.001