The ABCs of RBCs
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ABCs of RBCs programs
Isabels cover
Draft of chapter on Recursive Least Squares Learning
Solving two step ahead expectations
Table of Contents of The ABCs of RBCs
Addition to Chapter 12 on Stability of Taylor rules
matlab programs for figures 4.4 and 4

This page contains files related to the ABCs of RBCs.
Isabel's cover is an early version of the cover designed by my then seven year old daughter, Isabel. I still like it a lot. Harvard found it a bit too childish. I like the one they did as well, but this one wins my heart.
The zip file: ABCs of RBCs programs contains m files for all the programs in the book. The programs that generated figures 4.4 and 4.5 are included as separate file.
I am working on a chapter on Learning in DSGE models. The draft shown here is quite preliminary.
The addition to Chapter 12 shows the parameter spaces for a Taylor rule for which the model has a unique solution. Taylor rules based on rational expectations forecasts of inflation and output, on period t values of the variables, and of period t-1 values of the variables are considered.
Solving models with two step ahead expectations, such as some models with limited participation, requires solving a matrix cubic equation. A method for doing this that is based on Uhlig's method for solving quadratic equations is explained in "Solving two step ahead expectations". The method can be expanded in a straight-forward way to handle higher order equations.