Non-Linearities and Dynamics in a Neoclassical Model of Investment.

In this paper, we investigate the magnitude of errors that come about as a consequence of using a linear approximation to a well-known optimising model. We do this by taking a calibrated version of the neoclassical adjustment-cost model of investment due to Hayashi (1982).

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Year of publication:	1998
Authors:	Herbert, R.D. ; Stemp, P.J.
Institutions:	Department of Economics, Faculty of Business and Economics
Subject:	ECONOMICS \| MACROECONOMICS \| LINEAR MODELS

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Series:	Department of Economics - Working Papers Series.
Type of publication:	Book / Working Paper
Notes:	Number 671 7 pages
Classification:	C61 - Optimization Techniques; Programming Models; Dynamic Analysis ; E10 - General Aggregative Models. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005578957