TY  - BOOK
AU  - Maliar,Serguei
AU  - Maliar,Lilia
AU  - Judd,Kenneth L.
ED  - National Bureau of Economic Research.
TI  - Solving the Multi-Country Real Business Cycle Model Using Ergodic Set Methods
T2  - NBER working paper series
PY  - 2010///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - August 2010; Hardcopy version available to institutional subscribers
N2  - We use the stochastic simulation algorithm, described in Judd, Maliar and Maliar (2009), and the cluster-grid algorithm, developed in Judd, Maliar and Maliar (2010a), to solve a collection of multi-country real business cycle models. The following ingredients help us reduce the cost in high-dimensional problems: an endogenous grid enclosing the ergodic set, linear approximation methods, fixed-point iteration and efficient integration methods, such as non-product monomial rules and Monte Carlo integration combined with regression. We show that high accuracy in intratemporal choice is crucial for the overall accuracy of solutions and offer two approaches, precomputation and iteration-on-allocation, that can solve for intratemporal choice both accurately and quickly. We also implement a hybrid solution algorithm that combines the perturbation and accurate intratemporal-choice methods
UR  - https://www.nber.org/papers/w16304
UR  - http://dx.doi.org/10.3386/w16304
ER  -