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In this paper we prove that every linear model with rational expectations can be transformed by means of an one-to-one mapping into another model which has one of the following properties: i) it is degenerated, ii) it is backward, iii) it has a Blanchard-Kahn form. In addition to some simple...
Persistent link: https://www.econbiz.de/10005537519
In this paper, we examine techniques for the analytical and numerical solution of statedependent differential-difference equations. Such equations occur in the continuous time modelling of vintage capital growth models, which form a particularly important class of models in modern economic...
Persistent link: https://www.econbiz.de/10005537536
The transition from economic stagnation to sustained growth is often modelled thanks to "population-induced" productivity improvements, which are assumed rather than derived from primary assumptions. In this paper, the effect of population on productivity is derived from optimal behavior. Both...
Persistent link: https://www.econbiz.de/10005706177
We use two stage optimal control techniques to solve some adoption problems. We first consider the case of an isolated economy, which therefore takes its decisions in exclusive accordance with its own preferences and constraints. The planner has to decide whether the economy has to switch to a...
Persistent link: https://www.econbiz.de/10005706217
Persistent link: https://www.econbiz.de/10005706482
In this paper we investigate theoretically the numerical bias due to the truncation of structurally infinite time forward-looking models, by the means of various terminal conditions. On a general multivariate optimal growth model, we first analytically confirm some well-known heuristic...
Persistent link: https://www.econbiz.de/10005542258
Persistent link: https://www.econbiz.de/10005425271
Persistent link: https://www.econbiz.de/10005397272
We develop a general equilibrium vintage capital model with embodied energy-saving technological progress and an explicit energy market to study the impact of investment subsidies on investment and output. Energy and capital are assumed to be complementary in the production process. New machines...
Persistent link: https://www.econbiz.de/10004968666
The mechanism stating that longer life implies larger investment in human capital, is premised on the view that individual decision-making governs the relationship between longevity and education. This relationship is revisited here from the perspective of optimal period school life expectancy,...
Persistent link: https://www.econbiz.de/10011159875