Models for dynamic macroeconomics phần 5 pptx

... characterize the dynamics of the conditional probabil- ities for any future period. We write P t,t+i+1 − P t,t+i =(1−2P t,t+i )p  > 0ifP t,t+i < 0 .5, < 0ifP t,t+i > 0 .5. (3.A5) Evaluating ... 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 variabl...

Ngày tải lên: 09/08/2014, 19:21

... z). (5. 53) Equating (5. 52) to (5. 53), and using (5. 49) and (5. 48) to replace ˙ J and J ,we can solve for the level of wages outside steady-state equilibrium as: w(t)=z + ‚(y + cË(t) − z). (5. 54) The ... (5. 51) is satisfied. Hence, we have ˙ E (t) − ˙ U(t)= ‚ 1 − ‚ ˙ J (t). (5. 52) The dynamics of J are given by (5. 49), while the dynamics of E and U can be derived by subtracting (5. 3...

Ngày tải lên: 09/08/2014, 19:21

... 148 4 .5 Endogenous Growth and Market Imperfections 151 4 .5. 1 Production and non-rival factors 152 4 .5. 2 Involuntary technological progress 153 4 .5. 3 Scientific research 156 4 .5. 4 Human capital 157 4 .5. 5 ... productivity 204 5. 10 Increase in the separation rate 2 05 5.11 A temporary reduction in productivity 206 5. 12 Strategic interactions 212 5. 13 Multiplicity of equili...

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... this 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 1 953 –84. ¹² ... human wealth arising from an innovation in income for the assumed stochastic process. Expression (1 .55 ) for v t+1 can be substituted in the equation for K t (1.49). Thefactthat...

Ngày tải lên: 09/08/2014, 19:21

... 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 ... Econometrica, 55 , 1249–1273. (1996) “Understanding Risk and Return,” Journal of Political Economy, 104, 298–3 45. (1999) “Asset Prices, Consumption and the Business Cycle,” in J. B. T...

Ngày tải lên: 09/08/2014, 19:21

... 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 ... general feature of dynamic optimization problems, namely the character of interaction between endogenous capital and exogenous forc- ing variables: the former depends on the whole dynam...

Ngày tải lên: 09/08/2014, 19:21

... Sage, pp. 159 –218. and A. Ichino (19 95) “Wage Inequality and Unemployment: US vs Europe,” in B. Bernanke andJ.Rotemberg(eds.),NBER Macroeconomics Annual 19 95, 13 54 , Cambridge, Mass.: MIT Press. and ... these aspects by third parties. Many recent growth models allow for increasing rather than constant returns to scale, and are therefore naturally forced to study markets and producti...

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... the end of the chapter. We formally analyze determination of the steady state equilibrium in Section 5. 3 and the dynamic adjustment process in Section 5. 4. Finally, Section 5. 5 characterizes the efficiency ... an equilibrium with low (but non- zero) activity. For a formal analysis of the dynamics we linearize the system of dynamic equations (5. 1) and (5. 13) around a generic equili...

Ngày tải lên: 09/08/2014, 19:21

... 1990s,” Centre for Economic Performance Dis- cussion Paper 50 2; forthcoming in P. Aghion, R. Frydman, J. Stiglitz, and M. Woodford (eds.), Knowledge, Information and Expectations in Modern Macroeconomics: ... looking for is therefore the symmetric outcome corresponding to a hypothetical cooperative equilibrium.Formally, max e V(e, e), (5. A4) from which we obtain V 1 (e ∗ , e ∗ )+V 2 (...

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... the mass of vacancies. (c) (d) 266 ANSWERS TO EXERCISES Solution to exercise 51 Totally differentiating (5. 45) and (5. 46) around a steady state equilibrium point, we obtain  1 −(r + s )c q  q 2 1 ... =1+ pF 1+r ; therefore, with r = F =1andp =0 .5, the solution is 11/4‚ =2. 75/ ‚. When · = 2 and the firm fires, it employs x such that 2 − ‚x =1− (p + r )F 1+r , so employment is 7/4‚ =1. 75/...

Ngày tải lên: 09/08/2014, 19:21