2-nd Order Toolkit

This webpage introduces the concept of higher-order approximations. The primary focus will be on second-order approximations as formalised by Stephanie Schmitt-Grohé and Martin Uribe.

Their website which contains the original codes to their algorithms can be found here.

Their article explaining the derivation of the method can be downloaded here.

N.B. Please do not circulate or reproduce this material without proper citation of the authors.

The codes posted on this webpage use the A-M Algorithm to solve the Stochastic Brock-Mirman model.

The relevant files are: SBM_SGU.zip

Click here for an explanation of how these files work (requires Acrobat Reader).

In order to run SBM_SGU.zip, you need to install in the same directory as these files the following codes: SGU_Toolkit.zip