TY  - BOOK
AU  - Guler,Bulent
AU  - Yun,Tack
TI  - Euler equation approach for emerging-market macro models
SN  - 10168737
AV  - HB1A1 INT 
PY  - 2013///
CY  - Abingdon
PB  - Taylor and Francis
KW  - Euler equation appraoch
KW  - Time-iteration method
KW  - Parameterized expectations approach
N2  - This paper focuses on how to obtain numerical solutions to emerging-market DSGE models with occasionally binding constraints by using the Euler equation, rather than using value functions of households. The main point is that the Euler-equation approach works in a fast and simple way for a variety of recent emerging-market macro models. An important reason behind this point is that it is relatively easy to pin down the functional form of aggregate equilibrium conditions in these models. The time-iteration method is applied to Euler equations of a small open-economy with overborrowings. It is discussed how to use the Euler equation approach to recent models of sovereign debt and to show that the presence of the Laffer-curve of debt-revenues leads us to use the piecewise parameterized-expectations approach
UR  - https://doi.org/10.1080/10168737.2013.796111
ER  -