Production Technologies in Stochastic Continuous Time Models
CESifo, Munich, 2009
CESifo Working Paper No. 2831
Properties of dynamic stochastic general equilibrium models can be revealed by either using numerical solutions or qualitative analysis. Very precise and intuition-building results are obtained by working with models which provide closed-form solutions. Closed-form solutions are known for a large class of models some of which, however, have some undesirable features. This paper offers closed-form solutions for models which are just as tractable but do not suffer from these shortcomings.
Fiscal Policy, Macroeconomics and Growth