Showing 181 - 190 of 41,266
We propose a method to compute equilibria in dynamic models with several continuous state variables and occasionally binding constraints. These constraints induce non-differentiabilities in policy functions. We develop an interpolation technique that addresses this problem directly: It locates...
Persistent link: https://www.econbiz.de/10010730095
Intertemporal modelling is becoming increasingly important in general equilibrium policy analysis. Issues such as natural resource management, pollution control, investment, the promotion of technical change, and the accumulation of foreign debt all involve explicit intertemporal behavior and...
Persistent link: https://www.econbiz.de/10010737008
An extension of the hypothetical extraction method to a general equilibrium setting is considered. This has the advantage of re-interpreting output changes as efficiency gains or losses, which may be of use in identifying “key” sectors in an interconnected economy. The categorization may be...
Persistent link: https://www.econbiz.de/10010774419
This paper analyzes the qualitative properties of a multisectoral, multiregional computable general equilibrium model where some industries include heterogeneous firms as in Melitz (2003). The model, formulated according to Roson, R. and Oyamada (2014), adds endogenous productivity effects to a...
Persistent link: https://www.econbiz.de/10010888101
A hálózatok szerepe egyre kiemeltebb figyelmet kap az innovációval foglalkozó irodalomban: a hálózatok strukturális felépítésének szerepe pedig számos területen keltette fel a kutatók érdeklõdését. Dolgozatunkban azt vizsgáljuk, hogy a vállalatok közötti tudáshálózatok...
Persistent link: https://www.econbiz.de/10010902259
The Hahn-Banach Theorem plays a crucial role in the second fundamental theorem of welfare economics. To date, all mathematical economics and advanced general equilibrium textbooks concentrate on using nonconstructive or incomputable versions of this celebrated theorem. In this paper we argue for...
Persistent link: https://www.econbiz.de/10010779448
We show that the standard Value Function Iteration (VFI) algorithm has difficulties approximating models with jump discontinuities in policy functions. We find that VFI fails to accurately identify the location and size of jump discontinuities while other methods - such as the Endogenous Grid...
Persistent link: https://www.econbiz.de/10010781548
This paper discusses which changes in the architecture of a standard CGE model are needed in order to introduce effects of trade and firm het- erogeneity à la Melitz. Starting from a simple specification with partial equilibrium, one primary production factor and one industry, the framework is...
Persistent link: https://www.econbiz.de/10010782008
We show how to enhance the performance of a Smolyak method for solving dynamic economic models. First, we propose a more efficient implementation of the Smolyak method for interpolation, namely, we show how to avoid costly evaluations of repeated basis functions in the conventional Smolyak...
Persistent link: https://www.econbiz.de/10010785273
Considers the solution of large systems of linear equations, such as those arising from a large linearized economic model. Recommends (a) that matrix inversion be avoided, in favour of LU methods; and (b) that sparsity in the system be exploited using special computer subroutines. Some examples...
Persistent link: https://www.econbiz.de/10010877238