منابع مشابه
Estimating euler equations
Executive Summary In this paper we consider conditions under which the estimation of a log-linearized Euler equation for consumption yields consistent estimates of preference parameters. When utility is isoelastic and a sample covering a long time period is available, consistent estimates are obtained from the log-linearized Euler equation when the innovations to the conditional variance of con...
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I estimate an extended version of the incomplete markets consumption model allowing for heterogeneity in discount factors, nonseparable preferences for food and other nondurables, liquidity constraints, and precautionary savings. I find statistical support for this model, especially for the non-separability of preferences for food and other nondurables. JEL D12, D91, E21
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An all speed scheme for the Isentropic Euler equation is presented in this paper. When the Mach number tends to zero, the compressible Euler equation converges to its incompressible counterpart, in which the density becomes a constant. Increasing approximation errors and severe stability constraints are the main difficulty in the low Mach regime. The key idea of our all speed scheme is the spec...
متن کاملEuler Equation Branching
Some macroeconomic models exhibit a type of global indeterminacy known as Euler equation branching (e.g., the one-sector growth model with a production externality). The dynamics in such models are governed by a differential inclusion ẋ ∈ F (x), where F is a set-valued function. In this paper, we show that in models with Euler equation branching there are multiple equilibria and that the dynami...
متن کاملEstimating the Effects of Social Security Reform: an Euler-equation Approach
This paper shows theoretically and empirically that an aggregate Euler equation relates the real interest rate to the growth rate of per capita consumption and the ratio of private and social security wealth plus asset income to consumption. Using the estimated Euler equation, the paper then calculates the steady-state effects of social security reform. Reforms that reduce the ratio of social s...
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ژورنال
عنوان ژورنال: Journal of Monetary Economics
سال: 2004
ISSN: 0304-3932
DOI: 10.1016/j.jmoneco.2003.10.004