TAILIEUCHUNG - The Stochastic Growth Model

This article presents the stochastic growth model. The stochastic growth model is a stochastic version of the neoclassical growth model with microfoundations,1 and provides the backbone of a lot of macroeconomic models that are used in modern macroeconomic research. The most popular way to solve the stochastic growth model, is to linearize the model around a steady state,2 and to solve the linearized model with the method of undetermined coefficients. This solution method is due to Campbell (1994) | The Stochastic Growth Model Koen Vermeylen Download free books at The Stochastic Growth Model Contents Contents 1. Introduction 3 2. The stochastic growth model 4 3. The steady state 7 4. Linearization around the balanced growth path 8 5. Solution of the linearized model 9 6. Impulse response functions 13 7. Conclusions 18 Appendix A 20 A1. The maximization problem of the representative firm 20 A2. The maximization problem of the representative household 20 Appendix B 22 Appendix C 24 C1. The linearized production function 24 C2. The linearized law of motion of the capital stock 25 C3. The linearized first-order condotion for the firm s labor demand 26 C4. The linearized first-order condotion for the firm s capital demand 26 C5. The linearized Euler equation of the representative household 28 C6. The linearized equillibrium condition in the goods market 30 References 32 Masters in Management Stand out from the crowd Fast-track your career Please click the advert London Business School London Business School Regent s Park London NW1 4SA United Kingdom Tel 44 0 20 7000 7573 Email mim@ mim Designed for graduates with less than one year of full-time postgraduate work experience London Business School s Masters in Management will expand your thinking and provide you with the foundations for a successful career in business. The programme is developed in consultation with recruiters to provide you with the key skills that top employers demand. Through 11 months of full-time study you will gain the business knowledge and capabilities to increase your career choices and stand out from the crowd. Applications are now open for entry in September 2011. For more information visit mim email mim@ or call 44 0 20 7000 7573 Download free ebooks at 2 The Stochastic Growth Model Introduction 1. Introduction This article presents the stochastic growth model. The stochastic growth model is a .

• Tài chính doanh nghiệp
• Stats Practically
• growth model
• Linearization around
• balanced growth path
• linearized model
• Impulse response functions
• Entering Data
• Editing data
• Handling Data
• Descriptive Statistics
• Statistical Tests
• Drawing charts
• Frequencies
• Defi ning Variables
• Variable names
• Correcting entries
• stochastic growth model
• representative firm
• goods market
• steady state
• Linearization
• the balanced growth path
• Oil price stabilization fund
• Economic growth
• cointegration method
• Macroeconomic policies
• Variance decomposition approach