We introduce in this paper a method for solving nonlinear-quadratic Pareto problems. The method provides the investigator with a set of time series realizations for the variables in the economy. By obtaining a large number of these realizations, we can approximate the empirical distributions of a variety of statistics, which will give a detailed description of the model's properties. In particular, those statistics can be compared with the similar ones obtained from actual data, and different criteria for goodness of fit can be defined on the basis of these comparisons.
MLA
Novales, Alfonso. “Solving Nonlinear Rational Expectations Models: A Stochastic Equilibrium Model of Interest Rates.” Econometrica, vol. 58, .no 1, Econometric Society, 1990, pp. 93-111, https://www.jstor.org/stable/2938336
Chicago
Novales, Alfonso. “Solving Nonlinear Rational Expectations Models: A Stochastic Equilibrium Model of Interest Rates.” Econometrica, 58, .no 1, (Econometric Society: 1990), 93-111. https://www.jstor.org/stable/2938336
APA
Novales, A. (1990). Solving Nonlinear Rational Expectations Models: A Stochastic Equilibrium Model of Interest Rates. Econometrica, 58(1), 93-111. https://www.jstor.org/stable/2938336
By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device. Cookies are used to optimize your experience and anonymously analyze website performance and traffic.