Abstract
Purely classical, frequency-domain methods are useful for solving linear-quadratic dynamic rational expectations models. To illustrate this, generic scalar and multiple-variable problems are solved completely in the frequency domain. The procedure, which utilizes Wiener-Hopi methods to maximize the frequency-domain representation of the objective function, makes ordinarily troublesome second-order conditions transparent, allows infinite-order costs of adjustment, and handles moving average errors easily.
Original language | English (US) |
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Pages (from-to) | 225-240 |
Number of pages | 16 |
Journal | Journal of Economic Dynamics and Control |
Volume | 9 |
Issue number | 2 |
DOIs | |
State | Published - Oct 1985 |
All Science Journal Classification (ASJC) codes
- Economics and Econometrics
- Control and Optimization
- Applied Mathematics