Questions tagged [econ-overflow]

Relating to research based questions in economics. This tag should be used for advanced level questions.

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AR(1) in Discrete Version of Stochastic Growth Model

If I assume a stochastic growth model in discrete time and the production function is defined as $F(K_{t}(s^{t-1}), L_{t}(z^{t}))$ where $z^{t}$ is history of the technological shock up to time $t$. A ...
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How do we estimate discount factors?

We often talk about time preferences in intertemporal utility maximization problems. Usually we see some variant of: $$\max_{c_t}\sum_{t=0}^\infty\beta^tu(c_t)$$ subject to: $$\sum_{t=0}^\infty e_t=\...