Asymptotic methods for aggregate growth models

Abstract

We use perturbation methods to compute optimal policy functions in simple continuous- and discrete-time aggregate growth models. We demonstrate that computing the kth degree Taylor expansion of the policy function around the steady state involves solving one quadratic equation and k − 1 linear equations. We also compute Padé expansions, and show that both Taylor and Padé expansions can provide excellent solutions far from the steady state.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 141 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.