http://nepdge.wordpress.com/2012/08/26/efficient-simulation-of-dsge-models-with-inequality-constraints/ Discussion about the latest research in Dynamic General Equilibrium theory Thu, 09 May 2013 09:14:47 +0000 hourly 1 http://wordpress.com/ http://nepdge.wordpress.com/2012/08/26/efficient-simulation-of-dsge-models-with-inequality-constraints/#comment-2369 Sun, 26 Aug 2012 10:27:33 +0000 http://nepdge.wordpress.com/?p=413#comment-2369 You’re right that our method will never beat grid based methods in terms of accuracy. But what we can deliver is speed, even at scales for which grid based methods are not feasible even on super-computers.
Having said that, we will shortly be circulating a new version of the paper that extends our method to perturbation approximations of arbitrary order, and enables the method to be used alongside risky steady state solution methods. This enables fast approximations to the distortions caused by the risk of hitting the zero bound.

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