recsSolveLocal Calculates the first-order perturbation solution of a rational expectations model
recsSolveLocal implementes a slightly modified version of Klein's (2000) method.
MODEL = recsSolveLocal(MODEL) calculates the first-order perturbation solution
of the rational expectations model defined in the object MODEL. recsSolveLocal
add to the properties of the object MODEL the structure LinearSolution, which
contains the linear solution. To be used, recsSolveLocal requires the
deterministic steady state to have been found before.
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.