Template-Type: ReDIF-Paper 1.0
Title: Gains from second-order approximations
Author-Name: Matthias Paustian
Author-Email: 
Classification-JEL: E0, C63
Keywords: Second-order approximation, accuracy, optimalpolicy
Abstract:  The benefit from using second-order approximations tostochastic dynamic rational expec- tations models is explained. By example of the neoclassical 
	growth model, this note as- sesses the accuracy of the obtained approximation. The implications for optimal policy are discussed. 
Note: 
Length: 10
Creation-Date: 2003-11	
Revision-Date: 
File-URL: http://www.wiwi.uni-bonn.de/bgsepapers/bonedp/bgse25_2003.pdf
File-Format: application/pdf
Handle: RePEc:bon:bonedp:bgse25_2003