Differential-difference equations in economics: on the numerical solution of vintage capital growth models

Raouf Boucekkine (), Omar Licandro () and Christopher Paul

Open Access publications from Universidad Carlos III de Madrid from Universidad Carlos III de Madrid

Abstract: In this papel, we examine techniques for the analytical and numerical solution of statedependent differential-difference equations. Such equations occur in the continuous time modelling of vintage capital growth models, which form a particularly important class of models in modern economic growth theory. The theoretical treatment of non-statedependent differential-difference equations in economics has already been discussed by Benhabib and Rustichini (1991). In general, though, the state-dependence of a model prevents its analytical solution in all but the simplest of cases. We review a numerical method for solving state-dependent models, using sorne simple examples to illustrate our discussion. In addition, we analyse the Solow vintage capital growth model. We conclude by mentioning a crucial unresolved issue related to this topic.

Keywords: Economic growth theory; Vintage capital; Differential-difference equations; State-dependence; Numerical solution (search for similar items in EconPapers)
References: View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://e-archivo.uc3m.es/bitstream/10016/3951/1/we955929.pdf (application/pdf)

Related works:
Journal Article: Differential-difference equations in economics: On the numerical solution of vintage capital growth models (1997)
Working Paper: Differential-difference equations in economics: On the numerical solution of vintage capital growth models (1997)
Working Paper: Differential-Difference Equations in Economics: On the Numerical Solution of Vintage Capital Growth Models
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:ner:carlos:info:hdl:10016/3951

Access Statistics for this paper

More papers in Open Access publications from Universidad Carlos III de Madrid from Universidad Carlos III de Madrid
Series data maintained by Contact person ().