This paper compares the conventional Calvo and Rotemberg price adjustments at the zero lower bound (ZLB) on nominal interest rates. Although the two pricing mechanisms are equivalent to a first-order approximation around the zero-inflation steady state, they produce very different results, based on a fully-nonlinear method. Specifically, the nominal interest rate hits the ZLB more frequently in the Calvo model than in the Rotemberg model. At the ZLB, deflation is larger and recessions are more severe in the Calvo model. The main reason for the difference in results is that price adjustment costs show up in the resource constraints in the Rotemberg. When they are rebated to the household, the two models behave similarly.

This paper presents limits for stability of projection type schemes when using high order pressure-velocity pairs of same degree. Two high order h/p variational methods encompassing continuous and discontinuous Galerkin formulations are used to explain previously observed lower limits on the time step for projection type schemes to be stable [18], when h- or p-refinement strategies are considered. In addition, the analysis included in this work shows that these stability limits do not depend only on the time step but on the product of the latter and the kinematic viscosity, which is of particular importance in the study of high Reynolds number flows. We show that high order methods prove advantageous in stabilising the simulations when small time steps and low kinematic viscosities are used.

Drawing upon this analysis, we demonstrate how the effects of this instability can be reduced in the discontinuous scheme by introducing a stabilisation term into the global system. Finally, we show that these lower limits are compatible with Courant-Friedrichs-Lewy (CFL) type restrictions, given that a sufficiently high polynomial order or a mall enough mesh spacing is selected.

Spectral element methods on simplicial meshes, say TSEM, show both the advantages of spectral and finite element methods, i.e., spectral accuracy and geometrical flexibility. We present aTSEM solver of the two-dimensional (2D) incompressible Navier-Stokes equations, with possible extension to the 3D case. It uses a projection method in time and piecewise polynomial basis functions of arbitrary degree in space. The so-called Fekete-Gauss TSEM is employed,i.e., Fekete (resp. Gauss) points of the triangle are used as interpolation (resp. quadrature) points. For the sake of consistency, isoparametric elements are used to approximate curved geometries. The resolution algorithm is based on an efficient Schur complement method, so that one only solves for the element boundary nodes. Moreover, the algebraic system is never assembled, therefore the number of degrees of freedom is not limiting. An accuracy study is carried out and results are provided for classical benchmarks: the driven cavity flow, the flow between eccentric cylinders and the flow past a cylinder.

We compare the numerical methods that are most widely applied in the computation of the standard business cycle model with flexible labor. The numerical techniques imply economically insignificant differences with regard to business cycle summary statistics. Furthermore, these results are robust with regard to the choice of the functional form of the utility function and the model's parameterization. In addition, the extended path approach, albeit time-consuming, and the Galerkin projection are found to be the most accurate methods, given that we have not used function approximations beyond the second degree.

We explore alternative approaches to numerical solutions of large rational-expectations models. We discuss and compare several current alternatives, focusing on the trade-offs in accuracy, space, and speed. The models range from representative-agent models with many goods and capital stocks, to models of heterogeneous agents with complete or incomplete asset markets. The methods include perturbation and projection methods. We show that these methods are capable of analyzing moderately large models even when we use only elementary, general-purpose numerical methods.

Let $H$ be the discrete Schrödinger operator

$$Hu(n):=u(n-1)+u(n+1)+v(n)u(n),\quad u(0)=0$$

acting on $l^2 (\mathbb{Z}^+)$, where the potential $v$ is real-valued and $v(n) \to 0$ as $n \to \infty$. Let <formula form="inline" disc="math" id="frm007"><formtex notation="AMSTeX">$P$ be the orthogonal projection onto a closed linear subspace $\Lambda \subset l^2 (\mathbb{Z}^+)$. In a recent paper E. B. Davies defines the second order spectrum ${\rm Spec}_2(H, \Lambda)$ of $H$ relative to $\Lambda$ as the set of $z \in \mathbb{C}$ such that the restriction to $\Lambda$ of the operator $P(H - z)^2P$ is not invertible within the space $\Lambda$. The purpose of this article is to investigate properties of ${\rm Spec}_2(H, \Lambda)$ when $\Lambda$ is large but finite dimensional. We explore in particular the connection between this set and the spectrum of $H$. Our main result provides sharp bounds in terms of the potential $v$ for the asymptotic behaviour of ${\rm Spec}_2(H, \Lambda)$ as $\Lambda$ increases towards $l^2(\mathbb{Z}^+)$.