Working Paper
Computation of Business-Cycle Models with the Generalized Schur Method
Burkhard Heer, Alfred Maussner
CESifo, Munich, 2009
CESifo Working Paper No. 2873
CESifo, Munich, 2009
CESifo Working Paper No. 2873
![](https://cesifo.org/DocImg/cesifo1_wp2873.jpg?c=1689237016)
We describe an algorithm that is able to compute the solution of a singular linear difference system under rational expectations. The algorithm uses the Generalized Schur Factorization and is illustrated by a simple example.
CESifo Category
Empirical and Theoretical Methods
Empirical and Theoretical Methods
Keywords: stochastic dynamic general equilibrium, linear solution methods, algorithm, Generalized Schur factorization, business cycles
JEL Classification: C680,E320