TAILIEUCHUNG - The Stochastic Growth Model - Koen Vermeylen

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 Please click the advert The next step for top-performing graduates Masters in Management Designed for high-achieving graduates across all disciplines London Business School s Masters in Management provides specific and tangible foundations for a successful career in business. London Business School This 12-month full-time programme is a business qualification with impact. In 2010 our MiM employment rate was 95 within 3 months of graduation the majority of graduates choosing to work in consulting or financial services. As well as a renowned qualification from a world-class business school you also gain access to the School s network of more than 34 000 global alumni - a community that offers support and opportunities throughout your career. For more information visit mm email mim@ or give us a call on 44 0 20 7000 7573. Figures taken from London Business School s Masters in Management 2010 employment report Download free ebooks at 2 The Stochastic Growth Model Introduction 1. Introduction This article presents the stochastic growth .

• Tài chính doanh nghiệp
• stochastic growth model
• representative firm
• goods market
• steady state
• Linearization
• the balanced growth path
• linearized model
• Impulse response functions
• Stats Practically
• growth model
• Linearization around
• balanced growth path
• Equity premium puzzle
• Spirit of capitalism
• Jump diffusion model
• Equity premium puzzle based
• Free trade agreement
• Shirmp export
• Stochastic frontier gravity model
• Export growth decomposition
• GDP growth
• Oil price stabilization fund
• Economic growth
• cointegration method
• Macroeconomic policies
• Variance decomposition approach