Publisher Summary This chapter explores the numerical methods for solving dynamic
programming (DP) problems. The DP framework has been extensively used in economics …

Publisher Summary This chapter examines local and global approximation methods that
have been used or have potential future value in economic and econometric analysis. The …

In recent years, central banks have increasingly turned to forward guidance as a central tool
of monetary policy. Standard monetary models imply that far future forward guidance has …

We introduce a unified deep learning method that solves dynamic economic models by
casting them into nonlinear regression equations. We derive such equations for three …

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 examines the macroeconomic implications of sovereign risk in a model in which
banks hold domestic government debt. News of a future sovereign default hampers financial …

This paper estimates a structural model of optimal life‐cycle consumption expenditures in
the presence of realistic labor income uncertainty. We employ synthetic cohort techniques …

This chapter provides an overview of solution and estimation techniques for dynamic
stochastic general equilibrium models. We cover the foundations of numerical …

Despite facing significant uncertainty about their lifespans and health care costs, most
retirees do not buy annuities or long-term care insurance. In this paper, I find that retirees' …

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 …