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Production Technologies in Stochastic Continuous Time Models

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  • Klaus Wälde

Abstract

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. This paper offers closed-form solutions for models which are just as tractable but do not suffer from these shortcomings.

Suggested Citation

  • Klaus Wälde, 2009. "Production Technologies in Stochastic Continuous Time Models," CESifo Working Paper Series 2831, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_2831
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    File URL: https://www.cesifo-group.de/DocDL/cesifo1_wp2831.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    dynamic stochastic general equilibrium models; closed-form solution; continuous time; jump diffusion;

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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