The short-run Dynamics of Optimal Growth Model with Delays

Fabrice Collard, Omar Licandro () and Luis Puch

Annals of Economics and Statistics, 2008, issue 90, 127-143

Abstract: Differential equations with advanced and delayed arguments arise in the optimality conditions of continuous time growth models with delays. In this paper, we use optimal control theory with delays, and we propose a shooting method to numerically deal with this class of models. We find that for a large delay the economy converges to steady state by oscillations, but consumption smoothing mitigates the induced echo effects through an advanced Euler-type differential equation.

Date: 2008
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Citations: View citations in EconPapers (12)

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Related works:
Working Paper: The Short-Run Dynamics of Optimal Growth Models with Delays (2005)
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 (2004)
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
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Persistent link: https://EconPapers.repec.org/RePEc:adr:anecst:y:2008:i:90:p:127-143

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