"Numerical solution of dynamic equilibrium models under Poisson uncertainty" (with Timo Trimborn), Journal of Economic Dynamics and Control 37 (2013): 2602-2622.  [Matlab implementation]


The Matlab files illustrate how to apply the Waveform Relaxation algorithm to solve a neoclassical model with disasters. They also reproduce Figures 1 - 2 from Posch and Trimborn (2013).

  • Choose the directory "Waveform" as current Matlab directory.
  • execute "rbc.m" to start the calculations. The Figures show the policy function, the deviation from the last iteration, and absulte and relative errors (if available).
  • to modify the model open "rbc.m" (main file), "funcODE.m" (set of differential equations), and "findss.m" (steady state conditions).