qpm_solve: Solve a model under model-consistent expectations

In qpmR: Quarterly Projection Models for Monetary Policy Analysis

Solve a model under model-consistent expectations

Description

Reduces the model to first-order form (adding auxiliary states for lags/leads beyond one quarter), computes the steady state, and solves for the unique stable rational-expectations solution

x_t = P x_{t-1} + Q e_t

via the generalized Schur (QZ) decomposition (Klein 2000), with full Blanchard-Kahn diagnostics.

Usage

qpm_solve(model, tol = 1e-07)

Arguments

model	A qpm_model.
tol	Numerical tolerance for the solution residual check.

Value

An object of class qpm_solution with elements P, Q (transition and impact matrices over the expanded state vector), ss (steady state), and an eigenvalue table (see eigen_table()).

References

Klein, P. (2000). Using the generalized Schur form to solve a multivariate linear rational expectations model. Journal of Economic Dynamics and Control, 24(10), 1405-1423.

Examples

sol <- qpm_solve(qpm_template("bkl"))
sol

qpmR documentation built on Sept. 29, 2026, 5:10 p.m.