The toolkit adapts a first-order perturbation approach and applies it in a piecewise fashion to
solve dynamic models with occasionally binding constraints. Our examples include a real …

We study the effects of fiscal policy interventions in a liquidity trap in a model with nominal
rigidities and an interest rate rule. In a liquidity trap caused by a self-fulfilling state of low …

Animal studies show favorable effects of n-3 fatty acids on inflammation and cancer, but
results from epidemiologic studies appear to be inconsistent. The authors conducted meta …

We introduce a numerical algorithm for solving dynamic economic models that merges
stochastic simulation and projection approaches: we use simulation to approximate the …

We present the first necessary and sufficient conditions for the existence of a unique perfect-
foresight solution, returning to a given steady-state, in an otherwise linear model with …

Long-term earnings losses for displaced workers are large and counter-cyclical. Similarly,
the skewness of earnings growth rates is strongly pro-cyclical. This paper presents an …

We survey numerical methods that are tractable in dynamic economic models with a finite,
large number of continuous state variables.(Examples of such models are new Keynesian …

We compare the performance of the perturbation-based (local) portfolio solution method of
Devereux & Sutherland (2010a, 2011) with a global solution method. As a test suite we use …

We introduce an envelope condition method (ECM) for solving dynamic programming
problems. The ECM method is simple to implement, dominates conventional value function …

We develop an envelope condition method (ECM) for dynamic programming problems–a
tractable alternative to expensive conventional value function iteration (VFI). ECM has two …