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Nonlinearity, ComputationaL Complexity and Macroeconomic Modelling
Author(s) -
McAdam Peter,
Hughes Hallett A. J.
Publication year - 1999
Publication title -
journal of economic surveys
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.657
H-Index - 92
eISSN - 1467-6419
pISSN - 0950-0804
DOI - 10.1111/1467-6419.00099
Subject(s) - limiting , nonlinear system , acceleration , economics , econometrics , macroeconomic model , scale (ratio) , mathematical economics , computer science , mathematical optimization , mathematics , macroeconomics , engineering , physics , mechanical engineering , classical mechanics , quantum mechanics
In this paper we survey and appraise the main contributions to solving and stabilising non‐linear equation systems typically found in Economics. We are keen wherever possible to draw distinctions and limiting cases between different solution methods, define acceleration strategies and encourage the use of hybrid or switching algorithms. Both large‐scale traditional macroeconomic models as well as smaller non‐linear analytical models are considered.