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A THEORY OF PRUNING [PDF]

open access: possibleInternational Economic Review, 2014
AbstractOften, numerical simulations for dynamic, stochastic models in economics are needed. Kim et al. (Journal of Economic Dynamics and Control 32 2008, 3397–414) proposed “pruning” to deal with the challenge of generating explosive paths when employing second‐order approximations.
Lombardo, Giovanni, Uhlig, Harald
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