The short-run dynamics of optimal growth models with delays

Fabrice Collard (), Omar Licandro () and Luis A. Puch ()

No ECO2004/04, Economics Working Papers from European University Institute

Abstract: Differential equations with advanced and delayed time arguments may arise in the optimality conditions of simple growth models with delays. Models with investment gestation lags (time-to-build), consumption gestation lags (habit formation) or learning by using lie in this category. In this paper, we propose a shooting method to deal with leads and lags in the Euler system associated to dynamic general equilibrium models in continuous time. We introduce the discussion describing the dynamics that emerge under various assumptions on learning by using and gestation lags. Then, we implement the numerical method we propose to solve for the short run dynamics of a neoclassical growth model with a simple time-to-build lag.

Keywords: time-to-build; shooting method; DDEs (search for similar items in EconPapers)
JEL-codes: O40 E32 C63 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev and nep-dge
Date: 2004
View list of references View citations in EconPapers

Downloads: (external link)
http://www.iue.it/PUB/ECO2004-4.pdf main text

Related works:
Working Paper: The short-run dynamics of optimal growth models with delays (2003)
Working Paper: The short-run dynamics of optimal growth models with delays
Working Paper: The short-run dynamics of optimal growth models with delays (2004)
Working Paper: The Short-Run Dynamics of Optimal Growth Models with Delays (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:eui:euiwps:eco2004/04

Access Statistics for this paper

More papers in Economics Working Papers from European University Institute
Address: Badia Fiesolana, Via dei Roccettini, 9, 50016 San Domenico di Fiesole (FI) Italy
Contact information at EDIRC.
Series data maintained by Marcia Gastaldo ().