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Solution of linear-quadratic- Gaussian dynamic games using variational methods


Abstract: Methods are presented for solving a certain class of rational expectations models, principally those that arise from dynamic games. The methods allow for numerical solution using spectral factorization algorithms and for estimation of these models using maximum likelihood techniques.

Keywords: Game theory; Rational expectations (Economic theory);

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Provider: Federal Reserve Bank of Minneapolis

Part of Series: Staff Report

Publication Date: 1986

Number: 105