This article studies the accuracy of two versions of Kydland and Prescott's (1980, 1982) procedure for approximating optimal decision rules in problems in which the objective fails to be quadratic and ...

Dr. James McCaffrey presents a complete end-to-end demonstration of linear regression with two-way interactions between predictor variables. Standard linear regression predicts a single numeric value ...

This article describes three approximation methods I used to solve the growth model (Model 1) studied by the National Bureau of Economic Research's nonlinear rational-expectations-modeling group ...

The area \(A\) of a square of side length \(s\) is \(A=s^2\text{.}\) Suppose \(s\) increases by an amount \(\Delta s=ds\text{.}\) Draw a square and then illustrate ...

A function machine is a way of writing rules using a flow diagram. The equation \(3j - 6 = 9\) can be shown on a function machine by writing out the functions that have been applied to \(j\) in the ...