6

It is because you are using wrong data, in fact the two series you plot never overlap save for some crossing points, and given you are using wrong datasets its actually weird why they follow each other so close at the beginning in the first place (although probably it is just optical illusion due to scaling). If you are using Gross Domestic Product (GDP) ...


5

This does not seem to have anything to do with calculus. The idea is that the income not consumed $Y_d - C$ is saved (usually denoted by $S$). This saving is then lent out to companies (via banks) who invest it (usually denoted by $I$), and the accumulated capital is used in production. I am guessing this is denoted by $A$? And the change of $A$ in time is ...


2

The utility function taken for estimating demand systems depends on several parameters: The nature of theoretical models and definitions of the variables used in these models are quite different from the nature of data that is available to us for estimation. Standard microeconomic theory tells us that demand is obtained as a result of some form of utility ...


2

The solution to your question is price stickiness, or as the author calls it staggered pricing. Let's assume a typical question in the Basic New Kenesian DSGE Model: What happens when a technological shock hits the economy? More productive firms can produce cheaper but may not be able to lower their prices due to price rigidities thus demand from the ...


1

I recommend multiplying first eq by the only nominator in eq, then performing additions and subtractions. These operations are reversible.


1

As you already mentioned this equation can be derived from the households consumption rule. the equation is derived based on consumption C rather than income Y, by considering the marginal utility of comsuming right now vs saving and delaying consumption. Investment/net export is not a part of this model, so C=Y So lets take a look at the Euler condition ...


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