Numerical Analysis of a Monetary Overlapping-Generation Model

Jenny X Li
Department of Mathematics, UCLA
JXLi@math.ucla.edu

Abstract

In this paper, mathematical and numerical analysis are applied to a nonlinear operator equation arising from monetary economic modelling. For the nonlinear operator equation the contraction property is established, and fixed point iterations are employed to numerically solve the equation based on finite element discretizations. Convergence rate and error estimates are given for the numerical schemes. In this investigation, several numerical algorithms are proposed and analyzed. These algorithms have been realized as computer programs which make extensive use of several modern computer software packages such as Matlab (for numerical computations and graphics) and Mathematica (for symbolic computations).