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Three methods have been developed by the authors for solving optimal experimentation problems. David Kendrick (1981, 2002, Ch.10) uses quadratic approximation of the value function and linear approximation of the equation of motion to simulate general optimal experimentation (active learning)...
Persistent link: https://www.econbiz.de/10005537450
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In this paper, an analytic approach is applied to approximate stochastic differential utility for both endowment and production economies. This utility function satisfies a second order nonlinear differential equation and is analytic near the stationary mean of the state variable. The radius of...
Persistent link: https://www.econbiz.de/10011155118
This paper applies nonlinear projection methods to solve Ramsey problems in a stochastic monetary economy. The presence of nonlinear distortions in the Ramsey problem requires the use of a solution procedure which captures these effects. The nonlinear projection method, even with low-order...
Persistent link: https://www.econbiz.de/10004966145
(Copyright: Elsevier)
Persistent link: https://www.econbiz.de/10005085596
This paper applies nonlinear projection methods to solve Ramsey problems in a stochastic monetary economy. The presence of nonlinear distortions in the Ramsey problem requires the use of a solution procedure which captures these effects. The nonlinear projection method, even with low-order...
Persistent link: https://www.econbiz.de/10005579857
Persistent link: https://www.econbiz.de/10008497291
Remittance flows are quickly surpassing private capital flows and official aid in magnitude and rate of growth, making them the single most important form of income flows into developing and emerging economies. This paper uses a stochastic dynamic general equilibrium model to investigate the...
Persistent link: https://www.econbiz.de/10005342957
Drawing from a unique data set comprising 2,893 banks and 152 countries over the period 1987 to 2000, we test whether the adoption of the Basel Accord by Latin American and Caribbean countries was responsible for the serious slowdowns in credit growth experienced by these countries. We find...
Persistent link: https://www.econbiz.de/10009021294
The authors show that there is more responsiveness of consumption and output to changes in the money supply than exists in the standard neoclassical growth models.
Persistent link: https://www.econbiz.de/10005428196