The stable manifold for the discrete-time, one-sector optimal growth model is shown to be constructed by solving a functional equation for an implicit programming problem based on the planner's Euler equation. The implicit programming problem is described by a minimum-gain operator, and its...

The paper derives and illustrates a convenient implementation of a perturbation method for computing an approximate perfect foresight solution of a nonlinear rational-expectations model. The solution space is the set of finite Taylor-series approximations. In discussing this setting, Gaspar and...

Production capital and technology (i.e., total factor productivity) in US manufacturing are fundamental for understanding output and productivity growth of the US economy but are unobserved at this level of aggregation and must be estimated before being used in empirical analysis. Previously, we...

Production capital and total factor productivity or technology are fundamental to understanding output and productivity growth, but are unobserved except at disaggregated levels and must be estimated before being used in empirical analysis. In this paper, we develop estimates of production...

Two fundamental sources of output growth are production capital and technological knowledge. We consider technological knowledge in the form of total-factor productivity (henceforth, "productivity") in a constant-elasticity-of-substitution (CES) production function. But capital and productivity...

Consider the discrete-time state equation and feedback control rule (1) x(t) = Fx(t-1) + Gu(t) + e(t), (2) u(t) = Px(t-1), where x is an nx1 state vector, u is an mx1 control variable, and e is an nx1 disturbance distributed NIID(0,S), F and G are nxn and nxm parameter matrices, and P is an mxn...

The purpose of the paper is to derive and illustrate a new suboptimal-consistent feedback solution for infinite-horizon linear-quadratic dynamic Stackelberg games which is in the same solution space as the infinite-horizon dynamic programming feedback solution, but which puts the leader in a...

This paper describes an application of numerical methods to solve a continuous time non-linear optimal growth model with technology adoption. In the model, a non-convex production function arises from a threshold level of knowledge required to operate new technology. The study explains and...