Solving RE models for dummies
Patrick FÃ ̈ve, Fabrice Collard · RePEc: Research Papers in Economics · 2005
This paper illustrates using a very simple model that admits a close form solution that takes risk into account how to apply the existing numerical methods in a very simple way. Contrary to most existing models to teach solution methods, this model possesses non trivial properties as far as risk is concerned and the simension of the state space is concerned