Checking accuracy of solution

Hi all,

I am solving a model with a second-order approximation and want to check the accuracy of the solution since the model has large shock variances. I have read posts saying that the Euler errors or Den Haan-Marcet stat could be computed using simulated data, but I am computing theoretical moments so there is no simulated data. Is it necessary, or even possible, to check the accuracy of the numerical solution in this case?


You can still easily simulate the required data (use the periods statement). There is no theoretical measure that I am aware of that can be used to generally compute the accuracy of the solution

OK jpfeifer - thanks for your reply