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Tagged with dsge economic-growth
4 questions
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Economic growth in a DSGE model, despite mean-zero shocks
The DSGEs I've seen have steady-states, and mean-zero shocks.
Can these predict growth in GDP / capital etc?
Is this possible despite them being equilibrium models, or do you have to completely change ...
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2
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1
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Are business cycle fluctuations usually studied in a (New Keynesian) DSGE model, or can they also be studied in a growth model?
I wonder if business cycle fluctuations are usually studied in a (New Keynesian) DSGE model, or can they also be studied in a growth model?
- 559
3
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Is there any mainstream criticism of the Benes-Kumhof conclusion that the Chicago Plan would improve the US economy nowadays?
A 2012 IMF Working paper by Benes and Kumhof "The Chicago Plan Revisited
" has this abstract, finding in favor of the Chicago Plan an all counts basically:
At the height of the Great Depression a ...
5
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In economic modelling, how are we sure the linearized equilibria behave similarly to original equilibria?
The following problem is in the context of continuous time, although I suspect something could be said about discrete time also.
Let's assume that we have the following equation:
$$\dot x=f(x)$$
...
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