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040 |aCaOODSP|beng|erda|cCaOODSP
0861 |aFB3-6/2021-5E-PDF
1001 |aSwarbrick, Jonathan M., |eauthor.
24510|aOccasionally binding constraints in large models : |ba review of solution methods / |cby Jonathan Swarbrick.
264 1|aOttawa, Ontario, Canada : |bBank of Canada = Banque du Canada, |c2021.
264 4|c©2021
300 |a1 online resource (ii, 47 pages) : |bgraphs.
336 |atext|btxt|2rdacontent
337 |acomputer|bc|2rdamedia
338 |aonline resource|bcr|2rdacarrier
4901 |aStaff discussion paper = |aDocument d'analyse du personnel, |x1914-0568 ; |v2021-5
500 |aCover title.
500 |a"March 23, 2021."
504 |aIncludes bibliographical references (pages 42-47).
5203 |a"This practical review assesses several approaches to solving medium- and large-scale dynamic stochastic general equilibrium (DSGE) models featuring occasionally binding constraints. In such models, global solution methods are not possible because of the curse of dimensionality. This causes the modeller to look elsewhere for methods that can handle the significant non-linearities and non-differentiable functions that inequality constraints represent. The paper discusses methods-including Newton-type solvers under perfect foresight, the piecewise linear algorithm (OccBin), regime-switching models (RISE) and the news shocks approach (DynareOBC) - and compares the results from a simple borrowing constraints model obtained using projection methods, providing example MATLAB code. The study focuses on the news shocks method, which I find produces higher accuracy than other methods and allows the modeller to study multiple equilibria and determinacy issues"--Abstract, page ii.
650 0|aBusiness cycles|xEconometric models.
650 6|aCycles économiques|xModèles économétriques.
7102 |aBank of Canada, |eissuing body.
830#0|aStaff discussion paper (Bank of Canada)|x1914-0568 ; |v2021-5.|w(CaOODSP)9.806273
85640|qPDF|s862 KB|uhttps://publications.gc.ca/collections/collection_2021/banque-bank-canada/FB3-6-2021-5-eng.pdf