1 Methodological Problems -- 1.1 Why “Small” Models -- 1.2 Why Continuous Models -- 1.3 Plan of the Book -- 2 The Model -- 2.1 An Overwiew -- 2.2 The Single Equations -- 2.3 Steady-state, Comparative Dynamics, Stability, and Sensitivity -- 3 Empirical Results -- 3.1 Parameter Estimates --...

Chaotic exchange rate models are structural models built in discrete time (difference equations), and show that with orthodox assumptions (PPP, interest parity, etc.) and introducing plausible nonlinearities in the dynamic equations, it is possible to obtain a model capable of giving rise to...

Most recent theoretical research on endogenous economic growth has been conducted with continuous-time models that embody the assumption of an intertemporally optimizing representative agent. Yet virtually none of these models has been confronted with empirical data. In this paper we make use of...

10 The foreign exchange market -- 11 Balance of payments and national accounts -- 12 The role of the exchange rate in the adjustment process in a partial equilibrium framework -- 13 The role of income changes in the adjustment process -- 14 The absorption approach and interactions between...

The authors show the application of optimal control techniques via Pontryagin maximum principle to a continuous-time macroeconometric model of the Italian economy. They illustrate the results and examine their economic implications, amongst which the possibility of obtaining a better...