Collard, Fabrice and Licandro, Omar and Puch, Luis A. (2003) The short-run dynamics of optimal growyh models with delays. [Working Paper or Technical Report]
Official URL: http://http://eprints.ucm.es/7715/
Differential equations with advanced and delayed time arguments may arise in the optimality conditions of simple growth models with delays. Models with investment gestation lags (time-to-build), consumption gestation lags (habit formation) or learning by using lie in this category. In this paper, we propose a shooting method to deal with leads and lags in the Euler system associated to dynamic general equilibrium models in continuous time. We introduce the discussion describing the dynamics that emerge under various assumptions on learning by using and gestation lags. Then, we implement the numerical method we propose to solve for the short run dynamics of a neoclassical growth model with a simple time-to-build lag.
|Item Type:||Working Paper or Technical Report|
|Additional Information:||JEL clasification: O40, E32, C63|
|Uncontrolled Keywords:||Time-to-build, Shooting method, DDEs|
|Subjects:||Social sciences > Economics > Econometrics|
|Series Name:||Documentos de trabajo. Instituto Complutense de Análisis Económico (ICAE)|
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|Deposited On:||11 Mar 2008|
|Last Modified:||06 Feb 2014 07:55|
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