Publication Type
Working Paper
Version
publishedVersion
Publication Date
5-2010
Abstract
This paper provides a simple and elegance approach for an empirical investigation of a model with Epstein-Zin (1989) preferences. The perturbation method implemented in Dynare is readily applicable for computation of equilibrium and welfare. A stylized new Keynesian economy with sticky prices is analyzed and optimal simple rules are accessed across various types of monetary policy rules.
Keywords
Recursive preference, perturbation method, Dynare, Ramsey steady state, optimal simple rule.
Discipline
Economic Policy | Finance
Research Areas
Econometrics
Citation
An, Sungbae.
Optimal Monetary Policy in a Model with Recursive Preferences. (2010).
Available at: https://ink.library.smu.edu.sg/soe_research/1259
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.