This paper attempts to solve a benchmark money in utility model by first order Taylor approximation to the policy function. After a brief summary of recent development in first order Taylor approximation in solving dynamic stochastic general equilibrium models, we choose Sidrauski’s Money in utility model as a standard model and follow the approach proposed by Uhlig [1] to solve for the recursive law of motion at first order.
Fakhrehosseini, S., kaviani, M. (2017). Solving Monetary (MIU) models with Linearized Euler Equations: Method of Undetermined Coefficients. International Journal of Research in Industrial Engineering, 6(2), 172-183. doi: 10.22105/riej.2017.94115.1005
MLA
S.F. Fakhrehosseini; Meysam kaviani. "Solving Monetary (MIU) models with Linearized Euler Equations: Method of Undetermined Coefficients". International Journal of Research in Industrial Engineering, 6, 2, 2017, 172-183. doi: 10.22105/riej.2017.94115.1005
HARVARD
Fakhrehosseini, S., kaviani, M. (2017). 'Solving Monetary (MIU) models with Linearized Euler Equations: Method of Undetermined Coefficients', International Journal of Research in Industrial Engineering, 6(2), pp. 172-183. doi: 10.22105/riej.2017.94115.1005
VANCOUVER
Fakhrehosseini, S., kaviani, M. Solving Monetary (MIU) models with Linearized Euler Equations: Method of Undetermined Coefficients. International Journal of Research in Industrial Engineering, 2017; 6(2): 172-183. doi: 10.22105/riej.2017.94115.1005