Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 9 pdf
Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 9 pdf
... Wallace ( 199 2), Champ and Freeman ( 199 4), Brock ( 199 0),
and Sargent ( 198 7b) for a variety of applications of the overlapping generations
model to issues in monetary economics.
Exercises
Exercise 9. 1 ... these equilibria is credible, in the sense of subgame perfection, to be studied
extensively in chapter 22.
Narayana Kocherlakota ( 199 8) has compared gift-giving and monetary eq...
Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 7 pdf
... (i) (94 .0888,
.92 11); (ii) (93 .22, .94 33), and (iii) (95 .081874 592 15024, .95 24 590 6270 392 )?
b. Describe an iterative algorithm by which the program that you wrote for
exercise 7.1 might be used ... analyzed by Lucas and Prescott ( 197 1) and
Sargent ( 198 7a). The recursive competitive equilibrium concept was used by
Lucas and Prescott ( 197 1) and described further by Prescot...
Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 17 pdf
... precautionary savings have been analyzed by Miller ( 197 4), Sib-
ley ( 197 5), Zeldes ( 198 9), Caballero ( 199 0), Kimball ( 199 0, 199 3), and Carroll
and Kimball ( 199 6), just to mention a few other studies ... implement multilateral long-term lending among corre-
sponding “banks”: notes issued by individual A and owned by B are “honored”
or redeemed by individual C by being exchanged fo...
Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 23 pdf
... enforce-
ment
Andrew Atkeson ( 199 1) designed a model to explain how, in defiance of
the pattern predicted by complete markets models, low output realizations in
various countries in the mid- 198 0s ... designing a recursive contract similar
to ones constructed by Thomas and Worrall ( 198 8) and again by Kocherlakota
( 199 6a).
Let v
L
(σ),v
S
(σ) be the discounted present values delivere...
Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 1 potx
... insured away. Higher
present-value-of-endowment consumers will have permanently higher consump-
tion than lower present-value-of-endowment consumers, so that there is a non-
degenerate cross-section ... programming challenged
But Edward C. Prescott’s 197 7 paper Should Control Theory Be Used for Eco-
nomic Stabilization? asserted that Gordon was too optimistic. Prescott claimed
that in his 19...
Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 2 pptx
... Kalman filter in chapter 5 and the appendix on
filtering and control, chapter 5.
26
25
See Hamilton ( 199 4) or Hansen and Sargent (in press).
26
See Hansen ( 198 2), Eichenbaum ( 199 1), Christiano ... ( 198 2), Eichenbaum ( 199 1), Christiano and Eichenbaum ( 199 2),
Burnside, Eichenbaum, and Rebelo ( 199 3), and Burnside and Eichenbaum ( 199 6a,
199 6b) for alternative estimation stra...
Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 3 docx
... Bertsekas ( 197 6), Bertsekas and Shreve
( 197 8), Stokey and Lucas (with Prescott) ( 198 9), Bellman ( 195 7), and Chow
( 198 1). This chapter covers much of the same material as Sargent ( 198 7b,
chapter 1).
– ... permit uncertainty. Es-
sentially, we add some well-placed shocks to the previous non-stochastic prob-
lem. So long as the shocks are either independently and identically di...
Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 4 ppt
... (4.7.1), we apply a compu-
tational procedure described by Judd ( 199 6, 199 8). The method uses a polyno-
mial to approximate the ith iterate C
i
(V )ofC(V ). This polynomial is stored
on the computer ... involve no opti-
mization, just computing discounted expected utility. The appendix to chapter
6 describes some related examples based on search theory.
4.6.1. Example 1: calculating expe...
Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 5 doc
... Whiteman ( 198 3), Blanchard and Kahn ( 198 0), and Anderson, Hansen,
McGrattan, and Sargent ( 199 6) for applications and developments of these
methods.
14
See Hamilton ( 199 4) and Kim and Nelson ( 199 9) for ... recommended by Chow ( 199 7) and Anderson, Hansen,
McGrattan, and Sargent ( 199 6).
11
Blanchard and Kahn ( 198 0), Whiteman ( 198 3), Hansen, Epple, and Roberds
( 198 5), and...
Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 6 docx
... the expected
discounted present value of lifetime earnings for a worker who was last in state
i on job A and has never worked on job B; define v
b
(I) symmetrically.]
9
See Gittins ( 198 9) for more ... each period she remains unemployed, or a fixed wage w
that the worker receives if employed. Once employed, the worker is employed
forever with no chance of being fired. Every odd period (i.e.,...