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Computational Appendix to Entry, Exit, Embodied Technology, and Business Cycles

Listed author(s):
  • Jeffrey R. Campbell

    (Department of Economics, University of Chicago)

This appendix provides a detailed exposition of the computational method applied to the model of Campbell (1997). Heterogeneity in the production sector of that model implies that its prices and quantities are contnuous functions on the real line rather than scalars. The computational method used is an extension of standard log-linearization methods. It uses quadrature approximation of integrals to approximate a system of functional equations with a standard system of vector equations. Similar computational problems arise in other economic models which incorporate heterogeneity, such as that of Merz (1996), so the methods of this appendix may be of independent interest to other researchers.

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File URL: https://economicdynamics.org/appendix/campbell98.pdf
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Paper provided by Review of Economic Dynamics in its series Technical Appendices with number campbell98.

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Length: 25 pages
Date of creation: Mar 1997
Handle: RePEc:red:append:campbell98
Note: The original article was published in the Review of Economic Dynamics, volume 1 (1998), pages 371-408
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Marina Azzimonti, Department of Economics, Stonybrook University, 10 Nicolls Road, Stonybrook NY 11790 USA

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  3. repec:ucp:bknber:9780226304557 is not listed on IDEAS
  4. Jonas D. M. Fisher & Jeffrey R. Campbell, 2000. "Aggregate Employment Fluctuations with Microeconomic Asymmetries," American Economic Review, American Economic Association, vol. 90(5), pages 1323-1345, December.
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  9. Cooper, Russell & Haltiwanger, John, 1993. "The Aggregate Implications of Machine Replacement: Theory and Evidence," American Economic Review, American Economic Association, vol. 83(3), pages 360-382, June.
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  17. Bahk, Byong-Hong & Gort, Michael, 1993. "Decomposing Learning by Doing in New Plants," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 561-583, August.
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  20. Boddy, Raford & Gort, Michael, 1971. "The Substitution of Capital for Capital," The Review of Economics and Statistics, MIT Press, vol. 53(2), pages 179-188, May.
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  22. Robert J. Gordon, 1990. "The Measurement of Durable Goods Prices," NBER Books, National Bureau of Economic Research, Inc, number gord90-1, October.
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  24. Greenwood, Jeremy & Hercowitz, Zvi & Huffman, Gregory W, 1988. "Investment, Capacity Utilization, and the Real Business Cycle," American Economic Review, American Economic Association, vol. 78(3), pages 402-417, June.
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