Analytical And Numerical Methods For The Analysis Of Vintage Capital Models In Continuous Time
AbstractIn this paper, we propose a general analytical and computational framework to handle a large class of vintage capital models in continuous time. Concretely, our treatment applies to vintage capital models with clay-clay and putty-clay technologies, which covers most of the models recently published in the macroeconomic literature. We build on the relaxation algorithm developped in Boucekkine et al. (1999).i) We first come to analyze very precisely all the steps of the latter algorithm. In particular, its integration and cyclic coordinate descent procedures are discussed, mainly in terms of robustness. To this end, some alternative algorithmic schemes are examined. For comparison purposes, we solve the nonlinear Ramsey vintage capital model as dealt with in Boucekkine et al. (1999).ii) Second, we try to provide an assessment of the accuracy of the method by solving an optimal growth model with capital maintenance costs which admits some closed-form solutions.iii) We finally present some analytical tools aimed at complementing the computational experiments. These tools are shown to be of high interest as far as a rigorous investigation of the stability of the models is required. The problem involved is usually the computation of the roots of a transcendental function. We point at some useful procedures to detect the most "important" roots in terms of stability.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Society for Computational Economics in its series Computing in Economics and Finance 2000 with number 238.
Date of creation: 05 Jul 2000
Date of revision:
Contact details of provider:
Postal: CEF 2000, Departament d'Economia i Empresa, Universitat Pompeu Fabra, Ramon Trias Fargas, 25,27, 08005, Barcelona, Spain
Fax: +34 93 542 17 46
Web page: http://enginy.upf.es/SCE/
More information through EDIRC
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).
If references are entirely missing, you can add them using this form.