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Production technologies in stochastic continuous time models

  • Wälde, Klaus

Properties of dynamic stochastic general equilibrium models can be revealed by either using numerical solutions or qualitative analysis. Very precise and intuition-building results are obtained by working with models which provide closed-form solutions. Closed-form solutions are known for a large class of models some of which, however, have some undesirable features such as potentially negative output. This paper offers closed-form solutions for models which are just as tractable but do not suffer from these shortcomings.

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Article provided by Elsevier in its journal Journal of Economic Dynamics and Control.

Volume (Year): 35 (2011)
Issue (Month): 4 (April)
Pages: 616-622

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Handle: RePEc:eee:dyncon:v:35:y:2011:i:4:p:616-622
Contact details of provider: Web page: http://www.elsevier.com/locate/jedc

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