Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 14 pptx

Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 14 pptx

Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 14 pptx

... tech- nology, C t = L 1−α (φ t K t ) α , (14. 7.1a) I t = A (1 −φ t ) K t , (14. 7.1b) K t+1 =(1− δ) K t + I t , (14. 7.1c) All factors reproducible 451 14. 5. All factors reproducible 14. 5.1. One-sector ... is simpli ed to one where utility function (14. 2.1) is maximized subject to resource constraint (14. 6.2) with quantities of intermediate inputs given by equation (14. 6.12). The firs...

Ngày tải lên: 04/07/2014, 15:20

30 355 0
Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 2 pptx

Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 2 pptx

... stationary stochastic process, all second moments can be en- coded in a complex-valued matrix called the spectral density matrix. The auto- covariance sequence for the process determines the spectral ... difficult to predict variable; and (b) nevertheless that θ(L) = φ(L) so that the stochastic discount factor has subtle predictable components. Fea- ture (a) is needed to match observed prices...

Ngày tải lên: 04/07/2014, 15:20

56 314 0
Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 8 pptx

Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 8 pptx

... the state-contingent consumption to- day and the promised discounted utility tomorrow are functions of the initial promised discounted utility levels. Define v as the expected discounted utility ... function for a com- plete markets economy with date- and history-contingent commodities, whose markets have been reopened at date τ ,historys τ , given the wealth levels im- plied by the tails ......

Ngày tải lên: 04/07/2014, 15:20

55 338 0
Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 1 potx

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 ... humans share a com- mon ancestor called Eve who lived 200,000 years ago. All of macroeconomics too seems to have descended from a common source, Irving Fisher’s and Mil- ton Friedman’s consump...

Ngày tải lên: 04/07/2014, 15:20

25 294 0
Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 3 docx

Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 3 docx

... 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 distributed or Markov, straightforward ... method proceeds by constructing a sequence of value functions and associated policy functions. The sequence is created by iterating on the following equation, starting from V 0 = 0,...

Ngày tải lên: 04/07/2014, 15:20

11 323 0
Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 4 ppt

Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 4 ppt

... 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 expected utility Suppose ... V is a discounted present value that an insurer has promised to an unem- ployed worker, V u is a value for next period that the insurer promises the worker if he remains unemployed,...

Ngày tải lên: 04/07/2014, 15:20

14 304 0
Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 5 doc

Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 5 doc

... devoted to characterizing the conditions on A, B, R,and Q under which the optimal closed-loop system matrix (A−BF) is stable. These results are surveyed by Anderson, Hansen, McGrattan, and Sargent ... those prob- lems otherwise is why linear quadratic approximations are used so widely. We describe those approximations in appendix B to this chapter. In chapter 7, we go beyond the single-...

Ngày tải lên: 04/07/2014, 15:20

30 346 0
Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 6 docx

Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 6 docx

... 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., t ... revealed by “nature.” (Jovanovic assumed that T = ∞.) We use the recursive projection technique (the Kalman filter) of chapter 5 to handle the firm’s and worker’s sequential learning. The predicti...

Ngày tải lên: 04/07/2014, 15:20

48 277 0
Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 7 pdf

Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 7 pdf

... Concluding remarks This chapter has introduced two equilibrium concepts and illustrated how dy- namic programming algorithms are embedded in each. For the linear models we have used as illustrations, ... the parameter values listed in exercise 7.1. Exercise 7.6 Self-control This is a model of a human who has time-inconsistent preferences, of a type proposed by Phelps and Pollak (1968) and u...

Ngày tải lên: 04/07/2014, 15:20

18 348 0
Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 9 pdf

Recursive macroeconomic theory, Thomas Sargent 2nd Ed - Chapter 9 pdf

... have already en- countered repeated examples of the situation that, before an equilibrium with valued currency can exist, the equilibrium without valued currency must be a low-interest-rate economy ... these equilibria is credible, in the sense of subgame perfection, to be studied extensively in chapter 22. Narayana Kocherlakota (1998) has compared gift-giving and monetary equi- libria in a...

Ngày tải lên: 04/07/2014, 15:20

48 336 0
w