Continuous-time sunspot equilibria and dynamics in a model of growth
A decentralized growth model with heterogeneous agents is used to determine the existence of stationary sunspot equilibria in a continuous-time, nonstationary environment. The global dynamical components of the equilibria indicate that fluctuating growth can be explained not only by exogenous factors such as monetary and technological inputs but also by endogenous factors such as pessimistic and optimistic expectations and other self-fulfilling prophecies mechanisms. The theory provides an alternative to real business cycles approach to economic growth.
Publication Name: Journal of Economic Theory
Asymptotic methods for aggregate growth models
Discrete- and continuous-time aggregate growth problems can be efficiently addressed through the use of standard asymptotic approximation methods. Such methods are actually carried out by determining the local approximation of policy functions based on steady state problem. The solution is then obtained from the resulting high-degree polynomial or rational functions. Other methods, which likewise produce effectual solutions, are the Pade and Taylor expansion techniques.
Publication Name: Journal of Economic Dynamics & Control
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- Abstracts: An elementary approach to approximate equilibria with infinitely many commodities. Capital as a Commitment: Strategic Investment to Deter Mobility
- Abstracts: Asset-market structure and international trade dynamics. The first industrial revolution: a guided tour for growth economists
- Abstracts: Comment on E. Dierker and B. Grodal, "Modelling Policy Issues in a World of Imperfect Competition." Adjusting Green NNP to measure sustainability
- Abstracts: Quality change in price indexes. Optimal greenhouse-gas reductions and tax policy in the "DICE" model. Lethal model 2: the limits to growth revisited