diff --git a/deterministic.pdf b/deterministic.pdf index 389d4980aae5894add5dad705ec9a30630a971c6..654e80a22e10d76e8962c7c22ffeccaad8691607 100644 Binary files a/deterministic.pdf and b/deterministic.pdf differ diff --git a/deterministic.tex b/deterministic.tex index 3b0f7d95f2a3203edf75e4cae285a566a6d85de5..8240c64c0c23f36dfcbfb0248bc2b4114ca59043 100644 --- a/deterministic.tex +++ b/deterministic.tex @@ -259,11 +259,11 @@ f(\bar y, \bar y, \bar y, \bar u) = 0 \end{frame} -\begin{frame}{Approximating infinite horizon problems} +\begin{frame}{Approximating infinite-horizon problems} \begin{itemize} \item The above technique numerically computes trajectories for given shocks over a \emph{finite} number of periods - \item Suppose you are rather interested in solving an \emph{infinite} horizon + \item Suppose you are rather interested in solving an \emph{infinite}-horizon problem \item One option consists in computing the recursive policy function (as with perturbation methods), but this is challenging @@ -275,13 +275,13 @@ f(\bar y, \bar y, \bar y, \bar u) = 0 projection method would still be needed \item in any case, Dynare does not do that \end{itemize} - \item An easier solution, in the case of a return to equilibrium, is to - approximate it by a finite horizon problem + \item An easier way, in the case of a return to equilibrium, is to + approximate the solution by a finite-horizon problem \begin{itemize} \item consists in computing the trajectory with $y_{T+1}=\bar y$ and $T$ large enough \item drawback compared to the policy function approach: the - solution is specific to a given sequence of shock, and not generic + solution is specific to a given sequence of shocks, and not generic \end{itemize} \end{itemize} \end{frame} diff --git a/exercise-zlb.pdf b/exercise-zlb.pdf index ff83c9e8df948f1a16b656dceb09b62496be1874..681ddd359d4decc06dd27b544e6d2c01e4532f87 100644 Binary files a/exercise-zlb.pdf and b/exercise-zlb.pdf differ diff --git a/exercise-zlb.tex b/exercise-zlb.tex index 52797dabf59be59e5e4b4e0da15e5cf0c9e7be71..7fd00b96352ebb2923b21c35f2bcb4c1ca3941df 100644 --- a/exercise-zlb.tex +++ b/exercise-zlb.tex @@ -10,7 +10,7 @@ \title{Zero lower bound in a New Keynesian model} \author{Sébastien Villemot} -\date{June 12, 2018} +\date{June 4, 2019} \maketitle \begin{enumerate}