@article{df014a7742f64da78e2ba3d2f42d149f,
title = "Review of Solution and Estimation Methods for Nonlinear Dynamic Stochastic General Equilibrium Models with the Zero Lower Bound",
abstract = "We review solution and estimation methods for nonlinear dynamic stochastic general equilibrium models and their application, with a special focus on the zero lower bound on the nominal interest rate. In a fully nonlinear setting, both the solution and estimation methods involve iterative procedures, and their computational expense grows rapidly with an increase in the dimensionality of state variables and parameters. We describe how the procedures deal with the dimensionality problem.",
author = "Yasuo Hirose and Takeki Sunakawa",
note = "Funding Information: We would like to thank Fumio Hayashi for inviting us to write this review and providing us with constructive suggestions. We have also benefitted from Toni Braun{\textquoteright}s comments on the draft of this review. Hirose was supported by research grants from the Japan Center for Economic Research and Nomura Foundation. Sunakawa received a JSPS Grant-in-Aid for Scientific Research (KAKENHI) for Young Scientists, Project Number 18K12743. Publisher Copyright: {\textcopyright} 2019 Japanese Economic Association",
year = "2019",
month = mar,
doi = "10.1111/jere.12217",
language = "English",
volume = "70",
pages = "51--104",
journal = "Japanese Economic Review",
issn = "1352-4739",
publisher = "Wiley-Blackwell",
number = "1",
}