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Walras' Law in the steady state of DSGE models

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  • Costa Junior, Celso José

Abstract

The determination of the steady state of DSGE models remains the obscure stage of the resolution methods of this modeling. Researchers seek to solve a nonlinear system rather than understand the theory behind these models. In order to fill this gap and help in learning this methodology, this paper develops a procedure for finding the steady- state by using concepts that rest on Walras' Law.

Suggested Citation

  • Costa Junior, Celso José, 2016. "Walras' Law in the steady state of DSGE models," MPRA Paper 76182, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:76182
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    File URL: https://mpra.ub.uni-muenchen.de/76182/1/MPRA_paper_76182.pdf
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    References listed on IDEAS

    as
    1. Marimon, Ramon & Scott, Andrew (ed.), 1999. "Computational Methods for the Study of Dynamic Economies," OUP Catalogue, Oxford University Press, number 9780198294979.
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    JEL classification:

    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical

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