This paper describes an application of numerical methods to solve a continuous time non-linear optimal growth model with technology adoption. In the model, a non-convex production function arises from a threshold level of knowledge required to operate new technology. The study explains and...

The paper obtains two principal results. First, using a new definition ofhigher-order (2) matrix derivatives, the paper derives a recursion forcomputing any Gaussian multivariate moment. Second, the paper uses this resultin a perturbation method to derive equations for computing the...

The paper obtains two principal results. First, using a new definition of higher-order (2) matrix derivatives, the paper derives a recursion for computing any Gaussian multivariate moment. Second, the paper uses this result in a perturbation method to derive equations for computing the 4th-order...

Gross domestic product (GDP) and gross domestic income (GDI), though conceptually equivalent, differ by statistical discrepancy (SD). Currently, there are no estimates of SD by industry. Lack of such information hinders a proper understanding of the sources of inconsistency in the national...

This paper develops and illustrates the multi-step generalization of the standard single-step perturbation (SSP) method or MSP. In SSP, we can think of evaluating at x the computed approximate solution based on x0, as moving from x0 to x in "one big step" along the straight-line vector x-x0. By...

The paper describes and illustrates a method for generalizing the standard computation of period-to-period percentage change of total factor productivity (TFP) to computation of TFP based on a best k-times-differentiable model. A "model" is a k-times-differentiable functional form of a...

The extent of output growth, hence, productivity growth in service industries has been controversial. Although official data indicate productivity growth slowdowns in 1948-60 and 1979- 98, some economists suggest the official figures are inaccurate due to mismeasured output, inputs, or both. The...

Total factor productivity (TFP) computed as Solow-residuals could be subject to input-substitution bias for two reasons. First, the Cobb-Douglas (CD) production function restricts all input substitutions to one. Second, observed inputs generally differ from optimal inputs, so that inputs...