Differential-difference equations in economics: On the numerical solution of vintage capital growth models
AbstractIn this papel, 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 growth theory. The theoretical treatment of non-statedependent differential-difference equations in economics has already been discussed by Benhabib and Rustichini (1991). In general, though, the state-dependence of a model prevents its analytical solution in all but the simplest of cases. We review a numerical method for solving state-dependent models, using sorne simple examples to illustrate our discussion. In addition, we analyse the Solow vintage capital growth model. We conclude by mentioning a crucial unresolved issue related to this topic.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Dynamics and Control.
Volume (Year): 21 (1997)
Issue (Month): 2-3 ()
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Web page: http://www.elsevier.com/locate/jedc
Other versions of this item:
- Boucekkine, Raouf & Licandro, Omar & Paul, Christopher, . "Differential-difference equations in economics: on the numerical solution of vintage capital growth models," Open Access publications from Universidad Carlos III de Madrid info:hdl:10016/3951, Universidad Carlos III de Madrid.
- Boucekkine, Raouf, 1997. "Differential-difference equations in economics: On the numerical solution of vintage capital growth models," Open Access publications from UniversitÃ© catholique de Louvain info:hdl:2078/94386, Université catholique de Louvain.
- Raouf Boucekkine & Omar Licandro & Christopher Paul, . "Differential-Difference Equations in Economics: On the Numerical Solution of Vintage Capital Growth Models," Computing in Economics and Finance 1996 _036, Society for Computational Economics.
- C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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