EconStor >
Technische Universität Dresden >
Fakultät Wirtschaftswissenschaften, Technische Universität Dresden >
Dresden Discussion Paper Series in Economics, Faculty of Business and Economics, TU Dresden >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/22709
  
Title:Analytical and Numerical Solution of a Poisson RBC model PDF Logo
Authors:Schlegel, Christoph
Issue Date:2004
Series/Report no.:Dresden discussion paper in economics 05/04
Abstract:This paper analyses a RBC model in continuous time featuring deterministic incremental development of technology and stochastic fundamental inventions arriving according to a Poisson process. Other than in standard RBC models, shocks are uncorrelated, irregular and rather seldom. In two special cases analytical solutions are presented. In the general case a delay differential equation (DDE) has to be solved. Standard numerical solution methods fail, because the steady state is path dependent. A new solution based on a modified method of steps for DDEs provides not only approximations but also upper and lower bounds for optimal consumption path and steady state.
Subjects:Business cycle models with poisson shocks
RBC models in continuous time
Delay differential equations
JEL:E32
O41
C61
C65
C68
Document Type:Working Paper
Appears in Collections:Dresden Discussion Paper Series in Economics, Faculty of Business and Economics, TU Dresden

Files in This Item:
File Description SizeFormat
ddpe200405.pdf375.85 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/22709

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.