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In this paper, we introduce our GDSGE framework and MATLAB toolbox for solving dynamic stochastic general equilibrium models with a novel global solution method. The framework encompasses many well-known incomplete markets models with highly nonlinear dynamics such as models on financial crises,...
Persistent link: https://www.econbiz.de/10012837842
We study an exchange economy with overlapping generations of consumers who derive utility from consuming a non-durable commodity and housing. A banking sector offers loans to finance housing. We provide a complete characterization of the equilibrium dynamics which alternates between an expansive...
Persistent link: https://www.econbiz.de/10010308946
In this paper we consider the entry and exit of Örms in a dynamic general equilibrium model with capital. At the Örm level, there is a Öxed cost combined with increasing marginal cost, which gives a standard U-shaped cost curve with optimal Örm size. Entry is determined by a free entry...
Persistent link: https://www.econbiz.de/10010322762
There are three types of "Anything Goes" results: two of them from economic theory and one from the realms of dynamical systems. The study considers the implications of such results and tries to identify conditions under which certain types of conclusions may be implied: convergence, cycles or...
Persistent link: https://www.econbiz.de/10014076082
We present conditions for the emergence of singularities in DGE models. We distinguish between slow-fast and impasse singularity types, review geometrical methods to deal with both types of singularity and apply them to DGE dynamics. We find that impasse singularities can generate new types of...
Persistent link: https://www.econbiz.de/10012981040
In this paper we consider the entry and exit of RMS in a dynamic general equilibrium model with capital and a XED labour supply. At the firm level, there is a XED cost combined with increasing marginal cost, which gives a standard U-shaped cost curve with optimal firm size. At the aggregate...
Persistent link: https://www.econbiz.de/10013148778
This paper considers a general class of nonlinear rational-expectations models in which policymakers seek to maximize an objective function that may be household expected utility. We show how to derive a target criterion that is 1) consistent with the model's structural equations, 2) strong...
Persistent link: https://www.econbiz.de/10013112486
Persistent link: https://www.econbiz.de/10003957595
We study an exchange economy with overlapping generations of consumers who derive utility from consuming a non-durable commodity and housing. A banking sector offers loans to finance housing. We provide a complete characterization of the equilibrium dynamics which alternates between an expansive...
Persistent link: https://www.econbiz.de/10009664868
We study an exchange economy with overlapping generations of consumers who derive utility from consuming a non-durable commodity and housing. A banking sector offers loans to finance housing. We provide a complete characterization of the equilibrium dynamics which alternates between an expansive...
Persistent link: https://www.econbiz.de/10009537644