This paper reviews Bayesian methods that have been developed in recent years to estimate
and evaluate dynamic stochastic general equilibrium (DSGE) models. We consider the …

Publisher Summary This chapter discusses the salient features of international trade and
business cycles and summarizes the contributions of a particular branch of the literature on …

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 …

This paper applies the standard rational expectations competitive storage model to the study
of thirteen commodities. It explains the skewness, and the existence of rare but violent …

We propose a new method for computing equilibria in heterogeneous-agent models with
aggregate uncertainty. The idea relies on an assumption that linearization offers a good …

Research problems on the boundary of finance and macroeconomics are rapidly emerging
as central to the evolution of each field. In finance it is now well established that expected …

This paper studies asset returns in different versions of the one-sector real business cycle
model. We show that a model with habit formation preferences and capital adjustment costs …

Often, researchers wish to analyze nonlinear dynamic discrete-time stochastic models. This
paper provides a toolkit for solving such models easily, building on log-linearizing the …

The paper develops a discrete state space solution method for a class of nonlinear rational
expectations models. The method works by using numerical quadrature rules to …

This book presents a variety of computational methods used to solve dynamic problems in
economics and finance. It emphasizes practical numerical methods rather than …