Models for dynamic macroeconomics phần 4 potx

... f  (x) ˙ xdt. (2 .45 ) The integral (2 .43 ) has differential form dz(t)=y(t) dW(t)+dA(t), (2 .46 ) and it is natural to formulate a stochastic version of the “chain rule” relationships in (2 .45 ), used in ... process with differential as in (2 .46 ), then df(z(t)) = f  (z(t))y(t) dW(t)+ f  (z(t)) dA(t)+ 1 2 f  (z(t))(y(t)) 2 dt. (2 .47 ) Comparing (2 .46 –2 .47 ) with (2 .45 ), note that...

Ngày tải lên: 09/08/2014, 19:21

... 1990s,” Centre for Economic Performance Dis- cussion Paper 502; forthcoming in P. Aghion, R. Frydman, J. Stiglitz, and M. Woodford (eds.), Knowledge, Information and Expectations in Modern Macroeconomics: ... Bargains and Cycles,” Review of Economic Studies, 54, 47 3 48 3. (19 94) “Search Unemployment and On-the-Job Search,” Rev iew of Economic Studies, 61, 45 7 47 5. (2000) Equilibrium...

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... Unlimited optimal accumulation 141 4. 3 Decentralized Production and Investment Decisions 144 4. 3.1 Optimal growth 147 4. 4 Measurement of “Progress”: The Solow Residual 148 4. 5 Endogenous Growth and ... Growth 132 4. 1.1 Balanced growth 1 34 4.1.2 Unlimited accumulation 136 4. 2 Dynamic Optimization 138 4. 2.1 Economic interpretation and optimal growth 139 4. 2.2 Steady state an...

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... form, with Î =0 .44 , is a fairly good statistical description of the (aggregate) income dynamics for the USA, as shown by Campbell and Deaton (1989) using quarterly data for the period 1953– 84. ¹² ... specified, the information set used to form expectations of future incomes and to derive innovations is limited to past income values only. If agents form their expecta- tions using additi...

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... the static models studied in introductory microeconomic courses. As to investment costs, a formal treatment of the problem needs to 2 Dynamic Models of Investment Macroeconomic IS–LM models assign ... Incomplete Information, and Aggregate Consump- tion,” Econometrica, 63, 805– 840 . Romer, D. (2001) Advanced Macroeconomics, 2nd edn, New York: McGraw-Hill. Sargent, T. J. (1987) Dynam...

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... E t+1 [·]is therefore based on a broader information set than that at E t [·]. ³⁴ We could have adopted other conventions for the timing of the exogenous and endogenous stock variables. For example, ... rate w. 3 .4. 1. DYNAMIC WAGE DIFFERENTIALS As noted in the introduction to this chapter, it is certainly not very realistic to assume that labor mobility is costless for workers. Ther...

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... H ∂c =0, (4. 12) − ∂ H ∂k = d  Î(t)e −Òt  dt , (4. 13) lim t→∞ Î(t)e −Òt k(t)=0. (4. 14) 4. 2.1. ECONOMIC INTERPRETATION AND OPTIMAL GROWTH Equations (4. 12) and (4. 13) are the first-order conditions for ... condition (4. 14) . With equation (4. 20) for u(·), we get Î(t)=u  (c(t))=(c(t)) −Û . Given that c(t) grows at a constant exponential rate, Ï(t)=Î(t)e −Òt has expo- nential dynami...

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... and capital. For intermediate values, however, growth can certainly be positive. (We shall return to this issue in Section 4. 5.5.) 4. 5 .4. HUMAN CAPITAL Retaining assumptions (4. 32) and (4. 31), one ... optimal growth paths of these economies can be decentralized as in the models of Sections 4. 2.3 and 4. 5 .4. The model of Rebelo allows for a distinction between investment good...

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... the labor market than allocative shocks. Exercise 51 Derive formally, using the system of equations formed by (5 .44 ), (5 .45 ), and (5 .46 ), the e ffects on the steady-state levels of w, Ë,u,andv of ... (5 .46 ) For a given value of Ë, the wage is independent of the unemployment rate. The system can therefore be solved recursively for the endogenous variables u, Ë,andw. Using the definit...

Ngày tải lên: 09/08/2014, 19:21

... is ∂ ∂l F (k, l; ·)=· − ‚l. When · = 4 and the firm is hiring, employment is the solution x of 4 − ‚x =1+ pF 1+r ; therefore, with r = F =1andp =0.5, the solution is 11 /4 =2.75/‚. When · = 2 and the ... 82 ARMA, 16 Taylor expansion, 118 transversality condition, 4, 53, 54, 59, 60, 62, 139, 143 user cost of capital, 61, 77 Wiener process, 82 2 54 ANSWERS TO EXERCISES the economy needs a...

Ngày tải lên: 09/08/2014, 19:21